Global economic recovery gains pace, says IMF
THE global economy was given a cleaner bill of health by the IMF in its latest bi-annual World Economic Outlook (WEO) published last night, which predicted that world output will rise by 4 per cent overall this year compared with the 3.25 per cent forecast six months ago.
Consumer confidence higher than forecast
(NEW YORK) Confidence among US consumers rose in January to the highest level since September 2008 as the labour market improved and Americans became more upbeat about their immediate future.
Tata-backed Bjets flies into turbulence
TATA-BACKED and Indian-owned Bjets, which roared to the headlines two years ago by announcing a 50 business jets order and said it would become Asia’s largest fractional executive jet player with headquarters in Singapore and Mumbai, has hit severe turbulence.
JTC issues $9.6m contract for BAC
JTC Corporation (JTC) has awarded the $9.6 million contract for the construction of the Business Aviation Complex (BAC) at Seletar Aerospace Park (SAP) to Eng Lim Construction Co Pte Ltd.
Mizuho major lender for JAL fund: sources
(TOKYO) Mizuho Financial Group Inc will be the biggest lender to the Japanese state-affiliated fund helping to restructure Japan Airlines Corp (JAL), said three people with knowledge of the matter.
Air NZ offers bed if you buy 3 seats
(WELLINGTON) Air New Zealand yesterday said it will set a new benchmark for longhaul flights by offering beds in economy class, but they come with a catch – passengers need to buy three seats to enjoy lie-down travel.
Irish, German investment groups take EADS to Dutch court
(THE HAGUE) Two investment companies, Irish and German, will ask a Dutch court tomorrow for a probe into the running of European aerospace giant EADS, the court said on Monday.
Overheated China real estate may hurt commodity producers
(NEW YORK) Raw materials producers that sell to China may be hurt by slowing demand because the nation’s real estate market is poised for a ‘stumble’, according to hedge fund manager James Chanos.
Yung wins bid to use lawyers against claims
(HONG KONG) Larry Yung, Citic Pacific Ltd’s chairman when it warned of a potential US$2 billion in currency losses, has won his bid to defend Hong Kong shareholders’ claims in a court with lawyers.
Yuan must rise for China’s own sake, says researcher
(BEIJING) China must let the yuan rise because its undervaluation is fuelling domestic economic imbalances, such as a stunted services sector, a Chinese researcher said yesterday.
Keppel FY09 net profit surges 48% to $1.63b
KEPPEL Corp had a sterling year, posting a 48 per cent surge in net profit to $1.63 billion for 2009, with the boost coming from higher operating earnings and exceptional gains.
AIMS AMP to pay special distribution
AIMS AMP Capital Industrial Reit yesterday said a special distribution of 0.95 cent a unit will be paid on March 23. Unitholders with units in their CDP account as at Nov 30 will be entitled to the special distribution with the exception of 221.4 million units issued to AMP Capital Investment and cornerstone investors on Nov 24, ’09.
Jurong Cement shares surge
THE share price of Jurong Cement Limited (JCL) surged to a 10-year high yesterday, closing 12.1 per cent up at $2.50.
FCT launches private placement
FRASERS Centrepoint Trust (FCT), a shopping centre real estate investment trust (Reit), yesterday launched a private placement of 137 million new units to part finance its acquisition of Northpoint 2 and Yew Tee Point malls.
Otto to raise up to $95m in share placement
OFFSHORE marine group Otto Marine plans to raise up to $95 million via a private share placement to boost the growth of its specialised offshore services business and expand its chartering fleet.
Tiger Airways receives first owned aircraft
TIGER Airways, which recently raised some $233 million from its initial public offering (IPO), yesterday announced that its first owned aircraft has arrived in Singapore following delivery from Airbus in Toulouse, France.
Jiutian Chemical dives on ex-CEO’s conviction report
JIUTIAN Chemical Group’s share price took a beating in the market yesterday, falling 13.9 per cent from $0.18 to $0.155, after the company responded late on Monday night to reports of its former chairman and chief executive officer’s criminal conviction for accepting bribes.
Data retrieval a concern for businesses
A NEW global study shows there’s significant concern among businesses about their ability to retrieve data for litigation or in response to requests by regulators.
New Lakeside issues profit warning
NEW Lakeside Holdings issued a profit warning yesterday, expecting to report a pre-tax loss for its fiscal first half ended Dec 31, 2009. This was partially due to a 22.75 million yuan (S$4.68 million) provision a subsidiary had to make because of a bank claim.
Shangri-La Asia, Kerry Properties in JV
SHANGRI-LA Asia Limited (SA) and Kerry Properties Limited (KPL) have entered into a joint venture through their respective wholly owned subsidiaries for potential real estate development projects in China.
Company Briefs
FRASERS Commercial Trust (FCOT) posted a 31 per cent year-on-year increase in total distributable income for its Q1 ended Dec 31, 2009, from $9.3 million to $12.1 million, of which $4.75 million is available for distribution to Series A Convertible Perpetual Preferred Units (CPPU) holders and $7.4 million available for distribution to unitholders.
Softer interest rates hurt DBS more
CONTRARY to expectations, interest rates in Singapore have weakened, albeit marginally, from mid-December levels. But while the fall is small, it is not good news for banking giant DBS Group Holdings.
Japan debt and deflation woes worsening
PRESSURE intensified yesterday on the government to find a way out of escalating debt and chronic deflation as rating agency Standard & Poor’s downgraded Japan’s sovereign debt rating and as the Bank of Japan acknowledged the possibility that price falls could accelerate.
Fed mulling new benchmark interest rate
(WASHINGTON) Federal Reserve policymakers are considering adopting a new benchmark interest rate to replace the one they have used for the last two decades.
Obama to call for 3-year freeze on some govt spending
(WASHINGTON) President Barack Obama will call in his State of the Union address for a three-year freeze on spending for many domestic programmes as part of his strategy to rein in the deficit, administration officials said.
2010 risks re-visited
THE global economy is poised to return to positive growth this year, but crosswinds are fast gathering across the course to recovery, suggesting choppy waters ahead. Even as economies make further progress in their rehabilitation, 2010 is likely to be a challenging year for investors as government stimulus fades away, leaving private demand to pick up the mantle of driving activity.
Assessing 3 types of market risk
AFTER one of the most volatile periods for stocks in decades, it’s only natural for investors to wonder how risky the markets will be in 2010. Unfortunately, that is impossible to predict with any certainty.
Caution over equity valuations in Asia
AMID the general optimism over equities in Asia and the emerging markets, strategists at Barclays Wealth have sounded a note of caution over valuations in Asia. This runs counter to the consensus view that Asian growth is set to outstrip that of developed economies – a point that isn’t in dispute – and that market weakness is a buying opportunity.
JPMorgan sees sale of shares hitting US$30b
(MUMBAI) JPMorgan expects share sales in India to reach as much as US$30 billion in 2010, a 50 per cent increase, led by government stake sales and IPOs by power and property firms, its India investment banking head said.
Tight security as India celebrates 60th Republic Day
(NEW DELHI) Blanket fog obscured India’s 60th Republic Day celebrations yesterday, with the annual military parade here held under heightened security due to fears of militant attacks.
Indian petroleum product exports to US doubles
(NEW YORK) India more than doubled its exports of petroleum products to the US last year after Reliance Industries Ltd started a refinery for exporting, according to tanker data collected by Clarkson Research Services Ltd.
Indonesia delays deadline for single bank ownership
(JAKARTA) Indonesia will delay an end-2010 deadline requiring investors to own only a single bank in South-east Asia’s largest economy, giving the government more time to work out what to do with its stakes in four banks.
Hong Leong’s bid for EON may spark other bank deals
(KUALA LUMPUR) Malaysian billionaire Quek Leng Chan’s latest gamble to gobble up one of the country’s smallest banks could set the stage for a new round of deal making in the banking sector.
Bank Negara holds overnight rate at 2%
(SINGAPORE) Malaysia’s central bank kept its benchmark interest rate unchanged, while saying that borrowing costs cannot be kept too low for too long as economic growth in the South-east Asian nation strengthens.
M’sia economy to grow 3.7% in 2010
(KUALA LUMPUR) Malaysia’s gross domestic product may rebound this year from a contraction in 2009 amid signs the global economy is recovering from the worst recession since the 1930s, the Malaysian Institute of Economic Research said.
IRs driving demand for China-made buses
MORE and more China- made buses are plying Singapore roads, with demand being fuelled by the Integrated Resorts (IRs).
Sales growth may not boost car population
SALES growth may not necessarily lead to population growth if an automotive brand attracts more replacement buyers than new ones.
Goldman: BRIC to drive growth of breakbulk
THE breakbulk sector lags container shipping by about two quarters so for most of the players, 2009 was still a good year although this year will see a little bit of a falling off of demand as projects get completed and the next round of contracts takes time to be awarded.
Baltic Dry Index up on demand for ore carriers
(LONDON) The Baltic Dry Index, a measure of shipping costs for commodities, posted a third climb on demand to hire iron ore and coal carriers.
M-E tankers return to surplus after 3 weeks
(LONDON) The supply of supertankers waiting to collect 2 million-barrel cargoes of Middle East crude oil expanded for the first time in three weeks after demand for the vessels dropped.
Industry turning more upbeat
BACK in May 2008, international accounting and consulting group Moore Stephens decided to carry out a shipping confidence survey. It has repeated the exercises every three months since then. The surveys have provided a fascinating reflection of how the shipping industry has responded to the economic crisis precipitated by the credit crunch in late 2008.
STI tumbles 2.5% as twin fears hold sway
THE bottom fell out of the local stock market yesterday as a combination of fears took grip – worries over China’s bank lending restrictions which apparently could choke off a recovery, and an unstable Wall Street which has been rocked by fears of radical banking reforms.
Relieved businesses expect a good 2009 after all: SBF survey
2009′s bark appears to have been worse than its bite, in retrospect, according to the latest survey coordinated by the Singapore Business Federation (SBF).
Private banking for medical professionals
MEDICAL professionals have a new avenue of private banking available to them after The Standard Chartered Private Bank launched a new service yesterday.
Dec output jumps 14.4%; points to economic recovery
MANUFACTURING output increased by 14.4 per cent last month on a year-on-year (y-o-y) basis.
Whistle-blower hotline to be set up here by US firm
AMERICAN firm Global Compliance is launching a whistle-blower hotline in Singapore in partnership with Q2, a Singapore-based consultancy.
China Huaneng to spend big on Tuas Power
CHINA Huaneng Group, the new owner of Tuas Power, is spending more big bucks to make the Singapore genco even more competitive.
More Circle Line stations to open in April
ELEVEN more Circle Line (CCL) stations will begin operations on April 17, Transport Minister Raymond Lim announced yesterday.
Simpler way for execs to settle pay disputes
(SINGAPORE) More junior and mid-level executives who feel shortchanged by their bosses on perks and pay issues may soon be offered a less cumbersome way to settle their disputes. A proposed mediation mechanism could be rolled out next year to settle the claims and common employment disputes involving this group of employees.
Stock markets feel the pain as China tightens credit belt
(SINGAPORE) Stock markets across Asia recoiled amid concerns that credit tightening in China had kicked into a higher gear. The giant economy reportedly ordered some banks to comply immediately with a planned hike in reserves while a report suggested that earlier attempts at curbing lending had failed.
Ships cool heels in traffic jam at ports
(SINGAPORE) The deep freeze in northern China ports has resulted in some of the worst traffic jams ever seen on the seas as the eastern giant’s appetite for commodities grows.
HDB flats to stay affordable for Singaporeans: PM Lee
(SINGAPORE) The government is committed to keeping public housing affordable for Singaporeans, said Prime Minister Lee Hsien Loong yesterday.
Productivity growth key focus for panel
(SINGAPORE) When the Economic Strategies Committee unveils its proposals for Singapore’s future economic growth next month, a key focus will be on how to boost productivity.
Taking off just as sector emerges from downturn
(SINGAPORE) Asia’s biggest airshow is set to take off just as the aviation industry clambers out of one of its deepest downturns.
Horizon Twrs defendant moves to strike out suit
(SINGAPORE) The newest instalment of the Horizon Towers saga has taken a fresh turn, with one of the parties being sued now applying for the lawsuits against him and another to be struck out.
S’pore not adopting revision in fair value accounting yet
(SINGAPORE) Singapore has deferred the adoption of a much-awaited first amendment to fair value accounting, following a similar move by the European Commission late last year.
Three-Minute Digest
MORE junior and mid-level executives who feel short-changed by their bosses on perks and pay issues may soon be offered a less cumbersome way to settle their disputes.
Clarification
IN our report, ‘Former StarHub chief joins ST Telemedia’ yesterday, we referred to ST Telemedia as an investment arm of Temasek Holdings. Temasek has since clarified that ST Telemedia is a wholly-owned subsidiary and not its investment arm.
Time for a more transparent Fed
THIS week, the US Senate will vote on whether to reappoint Ben Bernanke, present chairman of the Federal Reserve, to a second term. By some accounts – and after the Democratic Party’s loss of a Senate seat in Massachusetts (a key Democrat stronghold) to the Republicans in a by-election last week – his reappointment is now under some threat. Mr Bernanke’s opponents argue that although he helped save the financial system from all-out collapse last year, it was his earlier lack of regulatory oversight which helped undermine the system in the first place by allowing speculative activity to flourish and letting banks become too-big-to-fail.
China must narrow gap with US in disaster relief
FOR all the talk of an America in decline and a rising China, the crisis triggered by the devastating earthquake in Haiti is a reminder of the huge disparity that still exists between the ability of the United States to project power, for military or humanitarian purposes, and that of China.
Google’s exit may pull plug on other tech giants in China
US SECRETARY of State Hillary Clinton’s strong speech on Internet freedom last Thursday put the spotlight firmly on Google’s spat with China over targeted cyber-attacks and censorship of the Internet.
New world order: Key trends and risks
THERE is a new world order at play. When considering the new world order, one of the key themes is long-term in nature but continues to drive some of the short-term factors. This is the shift in the balance of economic and financial power that is going on. The new world order has profound implications and the fundamentals do matter. The West needs to spend less and save more. Asia needs to spend more and save less.
Europe shouldn’t waste time seeking ‘visibility’
IF ONLY the world would stop for Europe. As the tragedy continues to unfold in Haiti and the US takes the lead in humanitarian relief efforts in the country, EU policymakers have become entangled in an acrimonious debate on Europe’s so-called ‘lack of visibility’ in delivering emergency aid to the country – and more generally, its chronic inability to punch its weight on the global stage.
Brokers’ Take
KEPPEL Land Ltd (KLL) announced that net profit in Q4 FY2009 had surged 56 per cent q-o-q to $107 million.
Investors sell high yield units for safe havens
THE woes in the stock markets had a swift effect on forex markets yesterday, as investors dumped high-yields for safe havens.
KDDI to pay US$4b for Jupiter stake
(TOKYO) KDDI Corp has agreed to buy Liberty Global’s 38 per cent stake in cable-television operator Jupiter Telecommunications Co for US$4 billion.
Porsche sued for US$1b by VW short sellers
(FRANKFURT) Porsche, maker of the 911 sports car, was sued by short sellers in Volkswagen stock who claimed Porsche secretly cornered the market in Volkswagen shares and later caused them more than US$1 billion in losses.
NY Fed’s role in AIG payments disclosure probed
(WASHINGTON) A United States bailout watchdog has launched two investigations into the New York Federal Reserve Bank’s actions on insurer AIG’s disclosure of payments to banks after its 2008 rescue, excerpts of prepared congressional testimony showed on Monday.
AIG scraps plan to sell airline leasing unit: FT
(NEW YORK) American International Group (AIG) has decided not to sell its aircraft leasing unit International Lease Finance Corp (ILFC), the Financial Times said, citing people close to the situation.
British economy out of recession in Q4
(LONDON) Britain crept out of recession in the fourth quarter of last year but only just.
Corporate disputes no longer private
(NEW YORK) When Time Warner Cable was tussling over fees with News Corp, it did something that would have been unthinkable in the backrooms where deals were once struck: It hired a political consultant to mount a public campaign against its own client.
Banner year for US wind power
(NEW YORK) Despite a crippling recession and tight credit markets, the American wind power industry grew at a blistering pace in 2009, adding 39 per cent more capacity. The country is close to the point where 2 per cent of its electricity will come from wind turbines.
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