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Fact check: Trump delivers wildly dishonest speech at CPAC | CNN Politics

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Fact check: Trump delivers wildly dishonest speech at CPAC | CNN Politics


Washington
CNN
 — 

As president, Donald Trump made a few of his most completely dishonest speeches on the annual Conservative Political Motion Convention.

As he embarks on one other marketing campaign for the presidency, Trump delivered one other CPAC doozy Saturday night time.

Trump’s prolonged tackle to the right-wing gathering in Maryland was crammed with wildly inaccurate claims about his personal presidency, Joe Biden’s presidency, overseas affairs, crime, elections and different topics.

Here’s a truth verify of 23 of the false claims Trump made. (And that’s removed from the whole.)

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Crime in Manhattan

Whereas Trump criticized Manhattan District Lawyer Alvin Bragg, who has been investigating Trump’s firm, he claimed that “killings are happening at a quantity like no person’s ever seen, proper in Manhattan.”

Information First: It isn’t even near true that Manhattan is experiencing a lot of killings that no person has ever seen. The area categorized by the New York Police Division as Manhattan North had 43 reported murders in 2022; that area had 379 reported murders in 1990 and 306 murders in 1993. The Manhattan South area had 35 reported murders in 2022 versus 124 reported murders in 1990 and 86 murders in 1993. New York Metropolis as an entire can also be nowhere close to report murder ranges; the town had 438 reported murders in 2022 versus 2,262 in 1990 and 1,927 in 1993.

Manhattan North had simply eight reported murders this yr by way of February 19, whereas Manhattan South had one. The town as an entire had 49 reported murders.

The Nationwide Guard and Minnesota

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Speaking about rioting amid racial justice protests after the police homicide of George Floyd in Minneapolis in 2020, Trump claimed he had been able to ship within the Nationwide Guard in Seattle, then added, “We saved Minneapolis. The factor is, we’re not supposed to try this. As a result of it’s as much as the governor, the Democrat governor. They by no means need any assist. They don’t thoughts – it’s virtually like they don’t thoughts to have their cities and states destroyed. There’s one thing unsuitable with these folks.”

Information First: This can be a reversal of actuality. Minnesota’s Democratic governor, Tim Walz, not Trump, was the one who deployed the Minnesota Nationwide Guard throughout the 2020 unrest; Walz first activated the Guard greater than seven hours earlier than Trump publicly threatened to deploy the Guard himself. Walz’s workplace informed CNN in 2020 that the governor activated the Guard in response to requests from officers in Minneapolis and St. Paul – cities additionally run by Democrats.

Trump has repeatedly made the false declare that he was the one who despatched the Guard to Minneapolis. You possibly can learn an extended truth verify, from 2020, right here.

Trump’s govt order on monuments

Trump boasted that he had taken efficient motion as president to cease the destruction of statues and memorials. He claimed: “I handed and signed an govt order. Anyone that does that will get 10 years in jail, with no negotiation – it’s not ’10’ however it turns into three months.” He added: “However we handed it. It was a really outdated legislation, and we discovered it – one among my excellent authorized folks together with [adviser] Stephen Miller, they discovered it. They mentioned, ‘Sir, I don’t know if you wish to try to convey this again.’ I mentioned. ‘I do.’”

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Information First: Trump’s declare is fake. He didn’t create a compulsory 10-year sentence for individuals who harm monuments. In truth, his 2020 govt order didn’t mandate any improve in sentences.

Relatively, the manager order merely directed the lawyer basic to “prioritize” investigations and prosecutions of monument-destruction instances and declared that it’s federal coverage to prosecute such instances to the fullest extent permitted below current legislation, together with an current legislation that allowed a sentence of as much as 10 years in jail for willfully damaging federal property. The manager order did nothing to pressure judges to impose a 10-year sentence.

Vandalism in Portland

Trump claimed, “How’s Portland doing? They don’t even have storefronts anymore. Every thing’s two-by-four’s as a result of they get burned down each week.”

Information First: This can be a main exaggeration. Portland clearly nonetheless has a whole bunch of lively storefronts, although it has struggled with downtown industrial vacancies for numerous causes, and a few companies are generally vandalized by protesters. Trump has for years exaggerated the extent of property harm from protest vandalism in Portland.

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Russian expansionism

Boasting of his overseas coverage report, Trump claimed, “I used to be additionally the one president the place Russia didn’t take over a rustic throughout my time period.”

Information First: Whereas it’s true that Russia didn’t take over a rustic throughout Trump’s time period, it’s not true that he was the one US president below whom Russia didn’t take over a rustic. “Completely false,” Michael Khodarkovsky, a Loyola College Chicago historical past professor who’s an skilled on Russian imperialism, mentioned in an electronic mail. “If by Russia he means the present Russian Federation that existed since 1991, then the very best instance is Clinton, 1992-98. Throughout this time Russia fought a battle in Chechnya, however Chechnya was not a rustic however one among Russia’s areas.”

Khodarkovsky added, “If by Russia he means the united states, as folks typically do, then from 1945, when the united states occupied a lot of Jap Europe till 1979, when USSR invaded Afghanistan, Moscow didn’t take over any new nation. It solely despatched forces into international locations it had taken over in 1945 (Hungary 1956, Czechoslovakia 1968).”

NATO funding

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Trump mentioned whereas speaking about NATO funding: “And I informed delinquent overseas nations – they had been delinquent, they weren’t paying their payments – that in the event that they wished our safety, they needed to pay up, and so they needed to pay up now.”

Information First: It’s not true that NATO international locations weren’t paying “payments” till Trump got here alongside or that they had been “delinquent” within the sense of failing to pay payments – as quite a few fact-checkers pointed out when Trump repeatedly used such language throughout his presidency. NATO members haven’t been failing to pay their share of the group’s widespread funds to run the group. And whereas it’s true that almost all NATO international locations weren’t (and nonetheless should not) assembly NATO’s goal of every nation spending a minimal of two% of gross home product on protection, that 2% determine is what NATO calls a “guideline”; it isn’t some kind of binding contract, and it doesn’t create liabilities. An official NATO recommitment to the two% guideline in 2014 merely mentioned that members not at the moment at that stage would “purpose to maneuver in the direction of the two% guideline inside a decade.”

NATO Secretary Common Jens Stoltenberg did credit score Trump for securing will increase in European NATO members’ protection spending, however it’s value noting that these international locations’ spending had additionally elevated within the final two years of the Obama administration following Russia’s 2014 annexation of Ukraine’s Crimea and the recommitment that yr to the two% guideline. NATO notes on its web site that 2022 was “the eighth consecutive yr of rising defence spending throughout European Allies and Canada.”

NATO’s existence

Boasting of how he had secured extra funding for NATO from international locations, Trump claimed, “Really, NATO wouldn’t even exist if I didn’t get them to pay up.”

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Information First: That is nonsense.

There was by no means any indication that NATO, created in 1949, would have ceased to exist within the early 2020s with out extra funding from some members. The alliance was steady even with many members not assembly the alliance’s guideline of getting members spend 2% of their gross home product on protection.

We don’t typically fact-check claims about what might need occurred in another state of affairs, however this Trump declare has no foundation in actuality. “The quote doesn’t make sense, clearly,” mentioned Erwan Lagadec, analysis professor at George Washington College’s Elliott College of Worldwide Affairs and an skilled on NATO.

Lagadec famous that NATO has had no bother getting allies to cowl the roughly $3 billion in annual “direct” funding for the group, which is “peanuts” to this group of nations. And he mentioned that the one NATO member that had given “any signal” lately that it was fascinated about leaving the alliance “was … the US, below Trump.” Lagadec added that the US leaving the alliance is one state of affairs that would realistically kill it, however that clearly wasn’t what Trump was speaking about in his remarks on spending ranges.

James Goldgeier, an American College professor of worldwide relations and Brookings Establishment visiting fellow, mentioned in an electronic mail: “NATO was based in 1949, so it appears very clear that Donald Trump had nothing to do with its existence. In truth, the concern was that he would pull the US out of NATO, as his nationwide safety adviser warned he would do if he had been reelected.”

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The price of NATO’s headquarters

Trump mocked NATO’s headquarters, saying, “They spent – an workplace constructing that price $3 billion. It’s like a skyscraper in Manhattan laid on its aspect. It’s one of many longest buildings I’ve ever seen. And I mentioned, ‘You must have – as a substitute of spending $3 billion, you must have spent $500 million constructing the best bunker you’ve ever seen. As a result of Russia didn’t – wouldn’t even want an airplane assault. One tank one shot by way of that lovely glass constructing and it’s gone.’”

Information First: NATO did spend some huge cash on its headquarters in Belgium, however Trump’s “$3 billion” determine is a significant exaggeration. When Trump used the identical inaccurate determine in early 2020, NATO informed CNN that the headquarters was truly constructed for a sum below the accepted funds of about $1.18 billion euro, which is about $1.3 billion at change charges as of Sunday morning.

The Pulitzer Prize

Trump made his standard argument that The Washington Publish and The New York Instances mustn’t have gained a prestigious journalism award, a 2018 Pulitzer Prize, for his or her reporting on Russian interference within the 2016 election and its connections to Trump’s crew. He then mentioned, “They usually had been precisely unsuitable. And now they’ve even admitted that it was a hoax. It was a complete hoax, and so they received the prize.”

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Information First: The Instances and Publish haven’t made any kind of “hoax” admission. “The declare is totally false,” Instances spokesperson Charlie Stadtlander mentioned in an electronic mail on Sunday.

Stadtlander continued: “When our Pulitzer Prize shared with The Washington Publish was challenged by the previous President, the award was upheld by the Pulitzer Prize Board after an impartial evaluate. The board said that ‘no passages or headlines, contentions or assertions in any of the profitable submissions had been discredited by information that emerged subsequent to the conferral of the prizes.’ The Instances’s reporting was additionally substantiated by the Mueller investigation and Republican-led Senate Intelligence Committee investigation into the matter.”

The Publish referred CNN to that very same July assertion from the Pulitzer Prize Board.

Consciousness of the Nord Stream 2 pipeline

Trump claimed of his opposition to Russia’s Nord Stream 2 gasoline pipeline to Germany: “Nord Stream 2 – No one ever heard of it … proper? No one ever heard of Nord Stream 2 till I got here alongside. I began speaking about Nord Stream 2. I needed to go name it ‘the pipeline’ as a result of no person knew what I used to be speaking about.”

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Information First: That is normal Trump hyperbole; it’s simply not true that “no person” had heard of Nord Stream 2 earlier than he started discussing it. Nord Stream 2 was an everyday topic of media, authorities and diplomatic dialogue earlier than Trump took workplace. In truth, Biden publicly criticized it as vice chairman in 2016. Trump might properly have generated elevated US consciousness to the controversial challenge, however “no person ever heard of Nord Stream 2 till I got here alongside” isn’t true.

Trump and Nord Stream 2

Trump claimed, “I received alongside very properly with Putin although I’m the one which ended his pipeline. Keep in mind they mentioned, ‘Trump is giving so much to Russia.’ Actually? Putin truly mentioned to me, ‘For those who’re my buddy, I’d hate like hell to see you as my enemy.’ As a result of I ended the pipeline, proper? Do you keep in mind? Nord Stream 2.” He continued, “I ended it. It was useless.”

Information First: Trump didn’t kill Nord Stream 2. Whereas he did approve sanctions on firms engaged on the challenge, that transfer got here practically three years into his presidency, when the pipeline was already round an estimated 90% full – and the state-owned Russian gasoline firm behind the challenge mentioned shortly after the sanctions that it could full the pipeline itself. The corporate introduced in December 2020 that development was resuming. And with days left in Trump’s time period in January 2021, Germany introduced that it had renewed permission for development in its waters.

The pipeline by no means started operations; Germany ended up halting the challenge as Russia was about to invade Ukraine early final yr. The pipeline was broken later within the yr in what has been described as an act of sabotage.

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The Obama administration and Ukraine

Trump claimed that whereas he supplied deadly help to Ukraine, the Obama administration “didn’t wish to get entangled” and merely “provided the bedsheets.” He mentioned, “Do you keep in mind? They provided the bedsheets. And perhaps even some pillows from [pillow businessman] Mike [Lindell], who’s sitting proper over right here. … However they provided the bedsheets.”

Information First: That is inaccurate. Whereas it’s true that the Obama administration declined to supply weapons to Ukraine, it supplied greater than $600 million in safety help to Ukraine between 2014 and 2016 that concerned excess of bedsheets. The help included counter-artillery and counter-mortar radars, armored Humvees, tactical drones, night time imaginative and prescient units and medical provides.

Biden and a Ukrainian prosecutor

Trump claimed that Biden, as vice chairman, held again a billion {dollars} from Ukraine till the nation fired a prosecutor who was “after Hunter” and an organization that was paying him. Trump was referring to Hunter Biden, Joe Biden’s son, who sat on the board of Ukrainian vitality firm Burisma Holdings.

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Information First: That is baseless. There has by no means been any proof that Hunter Biden was below investigation by the prosecutor, Viktor Shokin, who had been extensively faulted by Ukrainian anti-corruption activists and European international locations for failing to analyze corruption. A former Ukrainian deputy prosecutor and a high anti-corruption activist have each mentioned the Burisma-related investigation was dormant on the time Joe Biden pressured Ukraine to fireplace Shokin.

Daria Kaleniuk, govt director of Ukraine’s Anti-Corruption Motion Middle, informed The Washington Publish in 2019: “Shokin was not investigating. He didn’t wish to examine Burisma. And Shokin was fired not as a result of he wished to try this investigation, however fairly on the contrary, as a result of he failed that investigation.” As well as, Shokin’s successor as prosecutor basic, Yuriy Lutsenko, informed Bloomberg in 2019: “Hunter Biden didn’t violate any Ukrainian legal guidelines – a minimum of as of now, we don’t see any wrongdoing.”

Biden, as vice chairman, was finishing up the coverage of the US and its allies, not pursuing his personal agenda, in threatening to withhold a billion-dollar US mortgage assure if the Ukrainian authorities didn’t sack Shokin. CNN fact-checked Trump’s claims on this topic at size in 2019.

Trump and job creation

Promising to avoid wasting People’ jobs if he’s elected once more, Trump claimed, “We had the best job historical past of any president ever.”

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Information First: That is false. The US misplaced about 2.7 million jobs throughout Trump’s presidency, the worst total jobs report for any president. The web loss was largely due to the Covid-19 pandemic, however even Trump’s pre-pandemic jobs report – about 6.7 million jobs added – was removed from the best of any president ever. The economic system added greater than 11.5 million jobs within the first time period of Democratic President Invoice Clinton within the Nineteen Nineties.

Tariffs on China

Trump repeated a commerce declare he made ceaselessly throughout his presidency. Talking of China, he mentioned he “charged them” with tariffs that had the impact of “bringing in a whole bunch of billions of {dollars} pouring into our Treasury from China. Thanks very a lot, China.” He claimed that he did this although “no different president had gotten even 10 cents – not one president received something from them.”

Information First: As we have now written repeatedly, it’s not true that no president earlier than Trump had generated any income by way of tariffs on items from China. In actuality, the US has had tariffs on China for greater than two centuries, and FactCheck.org reported in 2019 that the US generated an “common of $12.3 billion in customized duties a yr from 2007 to 2016, in line with the U.S. Worldwide Commerce Fee DataWeb.” Additionally, American importers, not Chinese language exporters, make the precise tariff funds – and examine after examine throughout Trump’s presidency discovered that People had been bearing most of the price of the tariffs.

The commerce deficit with China

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Trump went on to repeat a false declare he made greater than 100 instances as president – that the US used to have a commerce deficit with China of greater than $500 billion. He claimed it was “five-, six-, seven-hundred billion {dollars} a yr.”

Information First: The US has by no means had a $500 billion, $600 billion or $700 billion commerce deficit with China even should you solely depend commerce in items and ignore the companies commerce during which the US runs a surplus with China. The pre-Trump report for a items deficit with China was about $367 billion in 2015. The products deficit hit a brand new report of about $418 billion below Trump in 2018 earlier than falling again below $400 billion in subsequent years.

Trump and the 2020 election

Trump mentioned folks declare they wish to run towards him although, he claimed, he gained the 2020 election. He mentioned, “I gained the second election, OK, gained it by so much. You recognize, after they say, after they say Biden gained, the good folks know that didn’t [happen].”

Information First: That is Trump’s common lie. He misplaced the 2020 election to Biden truthful and sq., 306 to 232 within the Electoral Faculty. Biden earned greater than 7 million extra votes than Trump did.

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Democrats and elections

Trump mentioned Democrats are solely good at “disinformation” and “dishonest on elections.”

Information First: That is nonsense. There may be simply no foundation for a broad declare that Democrats are election cheaters. Election fraud and voter fraud are exceedingly uncommon in US elections, although such crimes are sometimes dedicated by officers and supporters of each events. (We’ll ignore Trump’s subjective declare about “disinformation.”)

The liberation of the ISIS caliphate

Trump repeated his acquainted story about how he had supposedly liberated the “caliphate” of terror group ISIS in “three weeks.” This time, he mentioned, “In truth, with the ISIS caliphate, a sure basic mentioned it may solely be completed in three years, ‘and possibly it might probably’t be completed in any respect, sir.’ And I did it in three weeks. I went over to Iraq, met a fantastic basic. ‘Sir, I can do it in three weeks.’ You’ve heard that story. ‘I can do it in three weeks, sir.’ ‘How are you going to try this?’ They defined it. I did it in three weeks. I used to be informed it couldn’t be completed in any respect, that it could take a minimum of three years. Did it in three weeks. Knocked out 100% of the ISIS caliphate.”

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Information First: Trump’s declare of eliminating the ISIS caliphate in “three weeks” isn’t true; the ISIS “caliphate” was declared totally liberated greater than two years into Trump’s presidency, in 2019. Even when Trump was beginning the clock on the time of his go to to Iraq, in late December 2018, the liberation was proclaimed greater than two and a half months later. As well as, Trump gave himself far an excessive amount of credit score for the defeat of the caliphate, as he has previously, when he mentioned “I did it”: Kurdish forces did a lot of the bottom combating, and there was main progress towards the caliphate below President Barack Obama in 2015 and 2016.

IHS Markit, an data firm that studied the altering dimension of the caliphate, reported two days earlier than Trump’s 2017 inauguration that the caliphate shrunk by 23% in 2016 after shrinking by 14% in 2015. “The Islamic State suffered unprecedented territorial losses in 2016, together with key areas very important for the group’s governance challenge,” an analyst there mentioned in a press release on the time.

Navy tools left in Afghanistan

Trump claimed, as he has earlier than, that the US left behind $85 billion value of army tools when it withdrew from Afghanistan in 2021. He mentioned of the chief of the Taliban: “Now he’s received $85 billion value of our tools that I purchased – $85 billion.” He added later: “The factor that no person ever talks about, we misplaced 13 [soldiers], we misplaced $85 billion value of the best army tools on this planet.”

Information First: Trump’s $85 billion determine is fake. Whereas a major amount of army tools that had been supplied by the US to Afghan authorities forces was certainly deserted to the Taliban upon the US withdrawal, the Protection Division has estimated that this tools had been value about $7.1 billion – a piece of about $18.6 billion value of apparatus supplied to Afghan forces between 2005 and 2021. And a few of the tools left behind was rendered inoperable earlier than US forces withdrew.

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As different fact-checkers have beforehand defined, the “$85 billion” is a rounded-up determine (it’s nearer to $83 billion) for the whole sum of money Congress has appropriated throughout the battle to a fund supporting the Afghan safety forces. A minority of this funding was for tools.

The Afghanistan withdrawal and the F-16

Trump claimed that the Taliban acquired F-16 fighter planes due to the US withdrawal, saying: “They feared the F-16s. And now they personal them. Consider it.”

Information First: That is false. F-16s weren’t among the many tools deserted upon the US withdrawal and the collapse of the Afghan armed forces, for the reason that Afghan armed forces didn’t fly F-16s.

The border wall

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Trump claimed that he had stored his promise to finish a wall on the border with Mexico: “As you already know, I constructed a whole bunch of miles of wall and accomplished that job as promised. After which I started so as to add much more in areas that gave the impression to be permitting lots of people to come back in.”

Information First: It’s not true that Trump “accomplished” the border wall. In keeping with an official “Border Wall Standing” report written by US Customs and Border Safety two days after Trump left workplace, about 458 miles of wall had been accomplished below Trump – however about 280 extra miles that had been recognized for wall development had not been accomplished.

The report, supplied to CNN’s Priscilla Alvarez, mentioned that, of these 280 miles left to go, about 74 miles had been “within the pre-construction section and haven’t but been awarded, in areas the place no boundaries at the moment exist,” and that 206 miles had been “at the moment below contract, instead of dilapidated and outdated designs and in areas the place no boundaries beforehand existed.”

Latin America and deportations

Trump informed his acquainted story about how, till he was president, the US was unable to deport MS-13 gang members to different international locations, “particularly” Guatemala, El Salvador and Honduras as a result of these international locations “didn’t need them.”

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Information First: It’s not true that, as a rule, Guatemala and Honduras wouldn’t take again migrants being deported from the US throughout Obama’s administration, although there have been some particular person exceptions.

In 2016, simply previous to Trump’s presidency, neither Guatemala nor Honduras was on the listing of nations that Immigration and Customs Enforcement (ICE) thought of “recalcitrant,” or uncooperative, in accepting the return of their nationals.

For the 2016 fiscal yr, Obama’s final full fiscal yr in workplace, ICE reported that Guatemala and Honduras ranked second and third, behind solely Mexico, by way of the nation of citizenship of individuals being faraway from the US. You possibly can learn an extended truth verify, from 2019, right here.

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The relentless advance of American asset managers in Europe

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The relentless advance of American asset managers in Europe

Britain’s national airline might have been expected to choose a UK-based fund manager to look after £21.5bn of pension assets. But in 2021, British Airways turned to New-York based BlackRock to run the money.

It was not the only one. BAE Systems, a defence contractor, followed suit by giving Goldman Sachs its £23bn mandate. This year, Shell asked BlackRock to manage €26bn of its pension assets.

The recent US domination of so-called outsourced chief investment officer (OCIO) services is a particularly visible sign of a much broader shift in global money management. Very large US groups are building ever larger beachheads in the UK and Europe — gathering assets, squeezing fees and shaking up the market.

The Americans are profiting as European investors shift money into low-cost tracking funds and exchange traded funds and unlisted alternatives, including private equity, private credit and infrastructure.

Buoyed by rising fee income from vibrant US securities markets, the very largest US asset managers and the asset management arms of Wall Street banks such as JPMorgan Chase and Goldman Sachs outcompete their European and British rivals in part because they can spread technology and compliance costs across a larger asset base.

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“Competition for the largest mandates in the UK, Europe and the Middle East is increasingly between American firms,” says Fadi Abuali, co-chief executive of Goldman Sachs Asset Management International (GSAM). “We have scale, capacity to grow and we’re resilient.”

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As the world’s largest pension funds and endowments have started consolidating their business with fewer managers, the US groups’ size and diverse product offerings have given them an edge.

“Running an asset manager is becoming more and more expensive, so you need a big-scale platform that is managed very efficiently,” says Rachel Lord, head of BlackRock’s international business. “If you have a platform that can offer a lot of different things across active, index, technology and private markets, you can win.”

Over the past decade, assets under management by US groups in the UK and Europe more than doubled from $2.1tn in 2014 to $4.5tn as of the end of September, according to ISS Market Intelligence. In addition to substantially outpacing European rivals, the Americans are making further inroads in areas where they are globally dominant. These include UK tracker funds, where they now manage 59 per cent of all assets, and in the fast-growing active ETF sector where they control three-quarters of the market. 

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Many UK asset managers are also on the wrong side of long-term structural trends, says Jon Godsall, co-lead of McKinsey’s global wealth and asset management practice. Actively-managed funds investing in domestic equities — historically their bread and butter — are in decline, and mid-sized money management firms around the world are struggling.

Godsall adds that what appears to be “a reticence to adapt in the face of overwhelming evidence of the need to adapt” has been a far bigger factor in their decline than fears about the City of London’s standing in international capital markets, or the UK’s decision to leave the EU.

“When I talk to American managers, they have no problem with the City of London or Brexit — it’s going very well for them in the UK.”

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The pending return of Donald Trump to the White House, along with Republican control of Congress and a conservative-leaning Supreme Court, is propelling US momentum further.

Shares in US banks, alternative investment groups and some listed asset managers like BlackRock have soared on the prospect of deregulation, tax cuts and a boom in dealmaking. The industry harbours hopes that the Trump administration will make it easier to sell alternative investments including private equity, credit and cryptocurrencies to individual investors — all of which will increase the size, power and confidence of US asset managers.

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“I’ll whisper it because it’s embarrassing, but Trump’s return is actually really good for business,” says a top asset management executive at a US firm. “We’re energised, we’re winning business, we feel good. Clients feel that.” 

By contrast, the UK’s listed asset managers look beleaguered. Schroders and Abrdn have both appointed new bosses to try to boost flagging share prices and cut costs. In continental Europe, asset managers are increasingly trying to pull off big mergers to gain scale in the face of the Americans.

“[Clients] don’t want to talk to losers”, says the US executive “and they certainly don’t want to give their money to someone who may not be here in 10 years.”


The march of US asset managers into the UK and Europe echoes a similar phenomenon that played out decades earlier in stock trading and investment banking.

Margaret Thatcher’s “Big Bang” deregulation of the UK’s financial markets in 1986 stripped away the demarcation between banking, advising corporate clients and share trading. Over the following two decades, venerable City institutions such as Smith New Court, Barclays de Zoete Wedd and Cazenove were swallowed up by bigger US rivals and their European imitators such as Credit Suisse, Deutsche Bank and UBS.

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That paved the way for the American full-service investment banking model — where everything from sales and trading to research and mergers and acquisitions advice are brought under one roof — to conquer Europe. US institutions now dominate investment banking and have been stealing market share from European rivals for over a decade.

Money management is much less concentrated than investment banking, and some mid-sized US groups are facing similar structural headwinds to their peers across the Atlantic. But the best positioned US asset managers are now powering past European rivals, fuelled by robust growth at home and a strong dollar, which has supported international expansion.

Total assets under management in North America grew 16 per cent year on year in 2023, versus 8 per cent in Europe and 2 per cent in the UK, according to consultants BCG. 

“This scale advantage allows US firms to invest more substantially in absolute terms in technology and operations, enhancing their competitiveness and allowing them to outcompete local European players,” says Dean Frankle, managing director and partner at BCG in London.

“Slower growth and market fragmentation have presented challenges for European players, who face increased pressure to consolidate and compete.”

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A signature deal of the post-Big Bang era was Schroders’ sale of its investment banking division to Citigroup for £1.35bn in 2000. One of the last great dynastic British finance houses, Schroders was also one of a few homegrown investment banks that could compete for big-ticket M&A deals. But its board opted to double down on asset management, which uses less capital and generates reliable fee income.

That decision coincided with the high-water mark of its clients’ allocations to equities. In 1999, UK pension funds invested three-quarters of their assets in equities, with around half going into UK shares and a quarter into non-UK, according to data compiled by New Financial. 

A series of changes to tax and accounting rules led pension schemes to shift assets out of equities and into government bonds. By 2021, the average UK pension fund had cut its equity allocation to 27 per cent — with just 6 per cent in UK shares, sucking capital out of the domestic markets and depriving asset managers of their core client base.

That long-term trend was followed by the UK’s departure from the EU. “Brexit made the UK asset managers not European,” says a second top US executive. “Therefore they didn’t have a backyard of significance and had no real competitive advantage against the American firms.”

These UK-specific challenges were compounded by global trends, such as the shift from active to passive investing and the associated downward pressure on fees. As the number of quoted companies steadily fell, clients wanted more access to private markets, while large institutional investors tended to want closer relationships with fewer asset managers. 

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“Most UK players were left with neither global scale, captive distribution nor fast-growing product mixes,” says Huw van Steenis, partner and vice-chair at management consultancy Oliver Wyman, adding that merging with each other is unlikely to rescue them.

The second US executive describes the independent UK asset management industry as “largely irrelevant” and “something circling the drain”.

“London will remain the asset management centre for Europe, but the winners will increasingly be global firms, mostly the Americans.” 


Ironically, the current US success was part-made in Britain. In June 2009, Barclays sold its California-based index fund business to BlackRock. The UK bank netted $13.5bn from the disposal — but BlackRock got the ETF and tracker fund platform that would power its global success.

At around the same time, Vanguard arrived in the UK and began shaking up the retail investment market with the lowest-cost tracking funds that Europe had ever seen.

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The march of US managers was also aided by regulatory changes, such as the 2013 UK ban on commissions to advisers for the sales of financial products.

“It set the stage for us to have a low-cost offer in the market,” says Jon Cleborne, Vanguard’s head of Europe, of what was termed the retail distribution review. “Advisers really transitioned from having a commission-based product model to a fee-based planning model,” benefiting low-cost providers such as Vanguard. 

The biggest US managers also benefited from simply being large. “Scale is increasingly important [for] supporting the technology spend, the brand spend, and supporting the regulatory, legal and compliance framework that you need,” says David Hunt, chief executive of New Jersey-based PGIM, which manages $1.3tn. “If you don’t have a lot of assets it gets hard to stay in the competitive war.”

“You need to be able to invest through the cycle, through periods when profits are down and markets are tough,” says Patrick Thomson, chief executive of JPMorgan Asset Management in Europe, the Middle East and Africa. “To be able to do that you need to have a very diversified business.”

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The largest players can also provide more services, from high-fee private markets products to risk management and technology services. BlackRock’s institutional money management software Aladdin, for instance, raked in just shy of $1.5bn in revenues last year.

“The things that make BlackRock and [Goldman Sachs] formidable competitors are the things they offer that are not just asset management,” says Stefan Hoops, chief executive of Germany’s DWS, referring to Aladdin and OCIO.

The big US players also have local sales forces who work with European and UK financial advisers to explain the plethora of new investment products. 

“Go back 10 or 20 years ago, the complexity of the product and the amount of choice was significantly less,” says Caroline Randall, a UK-based member of the management committee at Los Angeles-based Capital Group. “You have to deliver value beyond investment, and we can offer to help our clients with that.”

Brexit also allowed some US groups, most notably BlackRock, to steal a march because they had already started building up domestic sales forces in major continental markets as well as the UK, while their rivals relied on EU passporting rules. 


The momentum of the big US groups is one of the factors forcing European banks, insurers and independent rivals to evaluate their commitment to asset management.

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Like Schroders did in 2000, they are weighing up whether to double down, partner with others in pursuit of scale, focus on a specialism where barriers to entry are higher, or exit the sector.

“You need scale, you can’t get to $1tn [of assets under management] and feel that things are good now,” says a banker who works on deals in the sector.

“The squeeze is no longer just felt by the mid-sized European players,” says Vincent Bounie, senior managing director at Fenchurch Advisory Partners. “Firms need capital . . . to support product development, gain efficiencies and reposition strategically towards areas of growth.” 

Thomas Buberl, chief executive of French insurance group Axa, told the Financial Times after agreeing a deal to combine its asset management business with that of BNP Paribas, that “it is the only way to compete in a heavily consolidated fund management sector that is increasingly dominated by big global firms.”

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Several other insurers are in talks to combine their asset management units with those of others, though such deals are difficult to execute. The FT revealed recently that Germany’s Allianz and French asset manager Amundi had paused long-running talks over a potential transaction because of disagreements over how best to structure it.

In the UK, Legal & General’s new chief executive António Simões has combined its substantial index tracking funds business with its private markets offering to create a single asset management division with £1.2tn in assets. “The barbell is where the asset management industry has gone: passive and private markets,” says Simões, adding that he is “considering bolt-on acquisitions, particularly in private markets and the US”.

The strength of the US groups makes them players in European consolidation as well. Goldman Sachs significantly expanded its European presence with its €1.6bn purchase in 2021 of Dutch insurer NN Group’s investment management arm — and beating Germany’s DWS in the process. 

Even as the European firms bulk up, their US rivals continue to steam ahead. Seven of the 10 fastest-growing fund groups in Europe this year are American, according to Morningstar. In the third quarter alone, BlackRock recorded $221bn of global net inflows — more than the entire European investment funds industry put together.

The US executive warns that scale alone is not a panacea. “The problem with most mergers in our industry is a failure to see that the compelling rationale must be centred around the client,” he says, adding that merging on the grounds that “we need to be big and pan-European to compete with the Americans” is not enough.

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New York judge says Trump is not immune from hush money conviction

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New York judge says Trump is not immune from hush money conviction

Former U.S. President Donald Trump departs the courtroom after being found guilty on all 34 counts in his hush money trial at Manhattan Criminal Court on May 30, 2024 in New York City.

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A New York judge ruled that former President Donald Trump cannot claim presidential immunity to overturn his felony conviction.

The decision from Judge Juan Merchan marks a temporary setback for the president-elect, who is set to return to the White House in January, and has recently secured a few wins including the indefinite delay of his sentencing in the case.

A New York jury earlier this year found Trump guilty of 34 counts of falsifyi business records to conceal a $130,000 hush money payment to adult-film star Stormy Daniels, in order to influence the 2016 presidential contest.

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Merchan, who presided over the trial earlier this year, still has to decide whether the trial should be dismissed due to Trump’s upcoming inauguration, as Trump’s lawyers have requested.

A Trump spokesperson criticized Merchan’s ruling, saying it violated the U.S. Supreme Court’s decision on presidential immunity.

Following his conviction in May, the Supreme Court ruled in a separate case that presidents have immunity for official acts they take in office.

“This lawless case should have never been brought, and the Constitution demands that it be immediately dismissed, as President Trump must be allowed to continue the Presidential Transition process, and execute the vital duties of the presidency, unobstructed by the remains of this, or any other, Witch Hunt,” said spokesman Steven Cheung in a statement.

Trump’s legal team had argued that various testimony in the hush-money case – such as that of former White House employees – and evidence – like statements made while Trump was president – violate the Supreme Court ruling that excludes official acts from prosecution.

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But Merchan said the criminal charges stemmed from Trump’s “private acts” prior to him becoming president. And he argued Trump’s communications about the payments while he was in the White House did not touch on any official acts.

The decision that Trump does not have immunity in this New York state case comes after the U.S. Department of Justice signaled it would take steps to wind down two federal prosecutions against Donald Trump, focused on his alleged efforts to cling to power after the 2020 election and accusations he hoarded classified documents at his Mar-a-Lago resort. The DOJ has a longstanding policy against prosecuting a sitting president.

Trump became the first former or sitting U.S. president to be tried on criminal charges and convicted. Trump’s legal team received several wins this summer and fall when Merchan postponed Trump’s sentencing twice — the second time purposefully until after Election Day to avoid appearing politically motivated. Trump may be the first president to enter the White House as a convicted felon should his efforts to dismiss the case fail.

But prosecutors in the case argued that since Trump’s lawyers are seeking dismissal only due to the election results, invalidating the jury’s verdict could harm public confidence in the justice system. Still, they proposed staying proceedings until after Trump finishes his presidential term.

Merchan has yet to rule on the motion to dismiss.

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Trump’s lawyers are likely to appeal Merchan’s Monday ruling, and have also sought to dismiss the case on other grounds.

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Donald Trump says Turkey was behind Islamist groups that toppled Assad in Syria

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Donald Trump says Turkey was behind Islamist groups that toppled Assad in Syria

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Donald Trump said on Monday that he believed Turkey was behind the rebel group that toppled Syria’s dictator Bashar al-Assad, claiming Ankara had mounted an “unfriendly takeover” of its neighbour.

Turkey’s President Recep Tayyip Erdoğan was “a smart guy and he’s very tough”, the US president-elect said at a news conference in Florida, and had made Ankara the most important foreign actor in Syria since Assad’s fall.

“They wanted it for thousands of years, and he got it. Those people who went in are controlled by Turkey,” Trump said. “Turkey did an unfriendly takeover without a lot of lives being lost.”

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The president-elect’s comments came as the US carried out air strikes against Isis fighters in Syria, and just days after secretary of state Antony Blinken said Washington was in contact with Hayat Tahrir al-Sham, the Islamist group that led a lightning blitz on Damascus earlier this month, forcing Assad to flee the country.

Foreign policy analysts said Trump — who will replace Joe Biden as US president next month — was sending a message to Erdoğan, with whom he has enjoyed a turbulent relationship.

“Trump has issued a warning of sorts to the new rulers of Syria and their patrons, which is ‘rule carefully, because we are watching’,” said Jonathan Schanzer, executive director of the Foundation for Defense of Democracies think-tank.

Turkey’s relations with HTS have been complex. It has not directly backed the group but has supported others that co-ordinated with HTS in its lightning offensive.

“I think Turkey is going to hold the key to Syria,” Trump said.

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Trump’s comments about Erdoğan reflected the US president-elect’s tendency to keep world leaders on their toes, a foreign policy expert said.

Erdoğan might have thought Trump would be an “ace in the hole”, said Jon Alterman, at the Center for Strategic and International Studies think-tank. But the Turkish leader would be “not sure exactly where he sits” following Trump’s comments, giving the US’s incoming leader leverage.

Trump and Erdoğan fused personal camaraderie and geopolitical friction during the US leader’s first term as president. Tensions escalated over Turkey’s purchase from Russia of the S-400 missile defence system, which ended in Turkey’s ejection from the US’s F-35 fighter jet programme. Ankara’s detention of American pastor Andrew Brunson in 2016 prompted Trump to blacklist Erdoğan advisers and threaten punitive economic sanctions.

Brunson’s release thawed relations between the leaders. Turkey later capitalised on Trump’s 2019 decision to withdraw US forces from northern Syria, leaving Kurdish forces exposed to Turkish military action.

Ties between Washington and Ankara have improved more recently, according to Turkish officials and western diplomats, despite some tension triggered by Erdoğan’s criticism of Israel over its Gaza offensive.

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Turkey also eventually backed Sweden’s accession to Nato earlier this year, after which Washington approved Ankara’s purchase off American F-16 fighter jets. American officials have also hailed Turkey’s role in a prisoner exchange between the US and Russia this year and Ankara’s fight against terrorist groups, including Isis.

Turkey has, however, pushed back strongly against Washington’s support for the Syrian Democratic Forces, a Kurdish-led group that Ankara considers indistinguishable from separatists that have battled the Turkish state.

Washington sees the SDF as a crucial partner in keeping Isis from significantly reconstituting in Syria in the political vacuum following Assad’s fall.

The US has been carrying out air strikes in Syria against Isis, including on Monday when US Central Command said strikes killed 12 fighters operating in former regime- and Russian-controlled areas.

Additional reporting by Andrew England in London and Adam Samson in New York

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