Cost-cutting in the works at Air India
(MUMBAI) State-run carrier Air India is set for dramatic cost-cutting in the months ahead that will test the willingness of workers to accept painful restructuring.
Boeing sued over Ethiopian jet crash
(BEIRUT) Relatives of passengers killed in an Ethiopian Airlines crash in Lebanon earlier this year have filed a multi-million dollar lawsuit in a US court against plane-maker Boeing, their attorney said on Tuesday.
Lufthansa’s profits beat estimates
(FRANKFURT) Lufthansa posted a 2009 operating profit that was better than expected after the German flagship carrier started slashing costs to become more lean and compete with low-cost carriers and Asian rivals.
China’s Little Giant opens R&D unit here
A SOFTWARE company dubbed ‘China’s Little Giant’ has opened its first R&D centre outside China in Singapore. Kingdee International Software Group Company, which has been operating in Singapore since early last year, said yesterday that it chose the island because of the government’s strong support for the IT industry.
Eight in 10 ICT companies see business growth in 2010
INFOCOMM technology (ICT) firms in Singapore are seeing good times ahead, with eight in 10 expecting their business to grow this year, according to a new survey by the Singapore infocomm Technology Federation (SiTF).
Cisco acquisition of Tandberg to boost telepresence market
VIDEO conferencing in high definition – called telepresence – is expected to get a major boost in the Asia-Pacific region with Cisco’s proposed acquisition of Tandberg, a major player in the video conferencing market.
Online RPG aims to teach children finance management
AN online role-playing game called Bao Bao Tang aims to teach children and families the basics of financial management.
HTC shares fall in trading after Apple lawsuit
(TOKYO) HTC Corp fell the most in three weeks in Taipei trading after Apple Inc filed a patent-infringement complaint seeking to stop imports of the company’s handsets running Google Inc’s Android software into the US.
IBM cuts 2,400 workers, says group
(NEW YORK) International Business Machines Corp (IBM), the world’s largest computer-services provider, fired about 2,400 workers, mostly in the US, according to an employee advocacy group.
Google wants US to take China to WTO
(WASHINGTON) The Obama administration is weighing the merits of taking China’s censorship of Google Inc to the World Trade Organization (WTO) as an unfair barrier to trade, a move that could further raise diplomatic tensions between Beijing and Washington.
Taiwan approves China financial investment rules
(TAIPEI) Taiwan has approved guidelines for investment by Taiwanese and Chinese financial institutions in each other, two government sources said yesterday, in a further strengthening of trade ties between the former political foes.
Asia-Pac airline stocks see mixed performance
AIRLINE stock prices worldwide have risen one to 2 per cent this year and remain well over 50 per cent above their February 2009 lows, thanks to improving business conditions and balance sheets.
Chemoil likely to remain listed after mandatory offer
FROM all indications, mainboard-listed marine fuel supplier Chemoil Energy is likely to stay publicly listed on the Singapore Exchange (SGX) – unlike home-grown Singapore Petroleum Company which was bought by oil giant PetroChina last year.
China Printing to be delisted on Monday
CHINA Printing and Dyeing Holding is making its exit from Singapore Exchange (SGX) on Monday – about three-and-a-half years after its listing on the mainboard in September 2006.
APB issues 4th series of $40m notes
ASIA Pacific Breweries (APB) has announced that it has issued a fourth series comprising $40 million in fixed rate notes under its $1 billion multicurrency medium term note programme established in April last year.
Midas plans global offer for HK dual-listing
MIDAS Holdings yesterday revealed that its intended dual-listing in Hong Kong shall be by way of a global offering of new shares.
Airocean trial: Three ex-directors file defence
A LAWYER representing former Airocean Group director Peter Madhavan argued in a subordinate court that the prosecution has failed to provide credible evidence to charge him with disclosure failure and with making a misleading statement.
Teledata names Howard Kim new MD
IT company Teledata (Singapore) has appointed Howard Kim, who has more than 20 years of experience in the communications business, as its managing director.
CastleBay Capital hires ex-Galleon Asia equities team
(SINGAPORE) Singapore-based fund manager CastleBay Capital said yesterday it has hired Justin Pollock, a former Galleon Asia portfolio manager, and his team for a new long/short Asian equity fund.
Company Briefs
ST Engineering electronics arm ST Electronics has won a contract worth about 48 million yuan (S$9.8 million) from Changchun Bombardier Railway Vehicles Co Ltd (CBRC).
Does Tiger really need to have a new cub?
COULD the Tiger be poised to bite off more than it can chew?
First rise in Japanese wages in 2 years brings cheer
JAPANESE workers’ wages, including overtime and bonuses, rose in January for the first time in nearly two years, it was reported yesterday.
Australia’s GDP up 0.9% last quarter
(SYDNEY) Australia’s economy grew at the fastest pace in almost two years in the fourth quarter of last year.
MIT professor tapped for Fed governor job
(WASHINGTON) The White House has contacted Peter Diamond, an economics professor at the Massachusetts Institute of Technology (MIT), about joining the Federal Reserve’s board of governors, according to people familiar with the discussion.
UK Feb service sector activity rises
(LONDON) Britain’s services sector bounced back faster than expected in February to record its strongest expansion in more than three years, a survey showed yesterday.
US jobs stalemate worries Republicans
(WASHINGTON) Congressional Republicans, nervous over the fallout from an impasse over jobs legislation, pressed one of their own to end a stalemate on Tuesday that has disrupted highway construction projects and unemployment benefits for hundreds of thousands of Americans.
Prices of new luxury homes surge
LAUNCH prices of new luxury residential projects in Singapore rose about 20-25 per cent last year and could appreciate a further 10-15 per cent this year, says CB Richard Ellis.
RAM sees promising outlook for M’sia
(KUALA LUMPUR) The outlook for the Malaysian property market is promising, with sales volume expected to increase by 5 to 10 per cent this year, according to RAM Holdings Bhd.
Japan Reit sector may halve due to M&As
(TOKYO) Japan’s real estate investment trusts will accelerate takeovers in the US$32 billion industry as banks pressure them to consolidate amid a tighter credit market and falling property prices, said Curtis Freeze, who agreed to sell his Reit to a unit of Oaktree Capital Management LLC.
313@somerset draws more people than expected
ORCHARD Road newcomer 313@somerset has received a higher than expected nine million visitors since it opened three months ago, the mall’s owner, Lend Lease Group, said yesterday.
China home prices unlikely to crash: CBRE
RENOWNED short-seller Jim Chanos sees a property bubble on the verge of bursting in China. But other well-known investors disagree – and on their side of the fence is CB Richard Ellis president and CEO for Asia Chris Brooke.
Reliance looks elsewhere as Lyondell rejects offer
(MUMBAI) LyondellBasell has rejected Reliance Industries’ offer that values the bankrupt US petrochemicals group at US$14.5 billion, Bloomberg said on Tuesday, a decision that could leave the Indian energy group having to look elsewhere for takeover targets.
Mittal spooks investors with Africa move
(NEW DELHI) Indian telecoms tycoon Sunil Bharti Mittal may be known for his Midas touch, but investors are questioning if his multi-billion-dollar bid to gain a foothold in Africa is a step too far.
India services industry grows at fastest pace since Jan 2009
(BANGALORE) India’s banking, hotels and other services grew in February at the fastest pace since at least January last year, aiding growth in Asia’s third-largest economy.
Allianz JV to start ops by year-end
(LONDON) The funds arm of German insurer Allianz, expects its Indian joint venture to start operations by year-end, and to score an advantage over rivals who were quicker to enter the much-touted market, its CEO said.
Indonesia lawmakers okay probe into bailout
(JAKARTA) Indonesian lawmakers narrowly voted yesterday to recommend that law enforcement agencies investigate the 2008 government bailout of a small bank. But, in a political compromise, they stopped short of citing any officials by name.
Penang looks to spillover of tourism from S’pore
WITH its services sector, particularly tourism, expanding at a faster clip in recent years, Penang is counting on the success of Singapore’s integrated resorts and a spillover of tourists from the south to help advance its economy.
Foreign labour shortage hits M’sian palm output
(KUALA LUMPUR) Malaysia, the world’s No 2 palm oil producer, will miss its output target of 18.1 million tonnes because of a shortage of foreign labour even as yields recover, a top industry official said yesterday.
Brazil’s OSX planning 9.9b reais IPO
(SAO PAULO) OSX, the Brazilian shipbuilder owned by billionaire Eike Batista, plans to raise up to 9.92 billion reais (S$7.7 billion) in what could become the nation’s largest initial public offering this year.
Academy set up to offer professional shipper courses
THE Singapore National Shippers’ Council (SNSC) yesterday launched the Singapore Shippers’ Academy to offer professional courses to local and regional shippers and train at least 1,000 people from the industry within three years.
Macquarie plans Miclyn IPO to raise up to A$365m
(MELBOURNE) Australia’s largest investment bank, Macquarie Group, is looking to float oil and gas services firm Miclyn Express Offshore in an initial public offering that could raise up to A$365 million (S$461.2 million).
India fuel exports rise on shipments to US, Japan
(NEW YORK) Bookings of tankers to export fuels from India’s west coast, the home of two Reliance Industries refineries, rose in February as India sold more gasoline to the US and Japan.
STI rises 10 points in soft session
STOCK prices yesterday exhibited the same directionless motion they have for the past several days, which is another way of saying that brokers spent another boring day at their terminals.
Labour chief backs move to up productivity
JUST as it had backed the growth-at-all-cost strategy, the labour movement will now go along with the move to boost productivity to drive the economy.
Halimah pokes holes in UBS study
LABOUR leader Halimah Yacob yesterday rejected a UBS study that concluded that wages and purchasing power in Singapore are lower than those in Dubai, Seoul, Hong Kong and Taipei.
MAS urges insurers to address protection gap
THE central bank has urged insurers to address the current insurance protection gap for consumers, rather than pushing investment-linked products which may yield higher returns given the improving market sentiment.
Singapore-EU FTA talks kicking off on Monday
SINGAPORE and the European Union (EU) will kickstart talks next Monday on a free trade agreement (FTA) that would open up new opportunities for both traders and consumers.
Life science showcase
THE Agency for Science, Technology and Research (A*Star)’s annual Science and Technology Festival is taking place at Biopolis until tomorrow to showcase the latest life science products and services. This year, it aims to reach out to the burgeoning biomedical science research community in Singapore.
Chinese agency wins LKY Water Prize
THE Yellow River Conservancy Commission (YRCC), an agency under China’s Ministry of Water Resources, beat 49 other nominees to emerge as the third winner of the Lee Kuan Yew Water Prize yesterday.
Suntec, RWS in cross selling partnership
IN A move that is expected to boost business for Singapore’s meetings, incentives, conventions and exhibitions (MICE) scene, Suntec Singapore and Resorts World Sentosa (RWS) are joining hands in a partnership to cross sell each other.
Head for China’s western frontier
LOOKING to invest in China? Go west, to Chongqing in central western China. Or head for Xian in the central north-west region. Both cities are on a new economic frontier that China is opening up.
Save on duties
DO you know that you can potentially save up to 35 per cent in import duties for your exports to China?
Second-tier cities offer growth potential
WHERE does one invest in China, which is such a vast market? One of Mapletree Investment’s strategies is to focus on second-tier cities with good growth potential, where it can find better value in real estate. And where growth has not fully taken off.
Venturing into food industry
Question: My company is a food manufacturer and we intend to set up operations in Western China.
Businesses to lead push for productivity
(SINGAPORE) Giving a sense of how Singapore’s productivity dynamic will play out in the future, Deputy Prime Minister Teo Chee Hean made it clear that the lead would have to come from the enterprises themselves.
Law firms hike salaries, slice bonuses
(SINGAPORE) Singapore’s largest law firms have upped the monthly salaries of their lawyers significantly, as they brace themselves for the onslaught of competition from the foreign law firms, amid the liberalisation of the legal industry here.
Sundaresh Menon to be new AG; Walter Woon returns to NUS
(SINGAPORE) Former Judicial Commissioner, and Rajah & Tann’s managing partner, Senior Counsel Sundaresh Menon, will be Singapore’s new Attorney-General (AG), come October.
Contra trading hurts equity derivatives’ growth: SGX chief
(SINGAPORE) Contra trading is here to stay but it is hurting the growth of equity derivatives here and will probably need to be re-priced, the new chief executive of the Singapore Exchange said yesterday.
Bankers could earn US$660m in fees from Prudential deal
(NEW YORK) Prudential Plc’s US$35.5 billion agreement to buy AIA from American International Group may generate US$660 million in fees for investment bankers, according to research firm Freeman & Co.
Prudential CEO to woo S’pore soon
(SINGAPORE) Tidjane Thiam, Prudential’s chief executive, will hit town before the end of the week as part of his Asian tour to win the support of staff and some major shareholders for his bold bid to take over AIA and create Asia’s largest insurer.
Greece seeks EU support for tough austerity plan
(ATHENS) Greece’s Cabinet approved a sweeping new austerity programme yesterday, the third in as many months, intended to rein in a bulging budget deficit and secure European financial support.
Stanchart posts record profit of US$3.38b
(LONDON) Standard Chartered plc (Stanchart) yesterday reported a seventh consecutive record annual profit, US$3.38 billion, as stronger wholesale banking earnings offset an increase in provisions for bad loans and other credit risks.
Citi looks to Asia, Latin America for growth
(SINGAPORE) Citigroup is looking to Asia and Latin America for most of its growth in the next few years, its chief financial officer John Gerspach said this week.
Three-Minute Digest
GIVING a sense of how Singapore’s productivity dynamic will play out in the future, Deputy Prime Minister Teo Chee Hean made it clear that the lead would have to come from the enterprises themselves.
Washington gets back to work again
ANYONE who has been following the efforts made by US President Barack Obama to win Congressional approval for an ambitious plan to fix the ailing US healthcare system would know by now that under the American system, even the most popular president cannot get anything done without a green light from a powerful Congress.
Flintstones will lose out to Jetsons for investment
I WAS travelling via Los Angeles International Airport (LAX) last week.
Asia’s man to helm the US-based IMF?
I RAISED an eyebrow recently when a well-placed source suggested to me that the next managing director of the International Monetary Fund (IMF) could be from Asia and not from Europe.
Nurturing innovative start-ups
AN ENTREPRENEUR with a brilliant idea and a marvellous business plan alone cannot guarantee the survival of a business, much less its success.
Not all firms that default may be liquidated
WE OFTEN assume that when a business defaults, this is tantamount to liquidation. Some research, for instance, assumes that equity holders choose the timing of default, knowing that once they do so the firm is immediately liquidated.
Broker’s Take
OVERWEIGHT position on Singapore unchanged; end-2010 index target lowered from 3,200 to 3,160.
Property tax for most will still be lower even if AV is hiked
MR DENIS Distant said that the benefits of the new progressive property tax may not last long if IRAS starts revaluing the Annual Value (AV) of properties (BT, Feb 26, ‘Property tax boon may be short-lived’).
Euro up against US$ as Greek plan details emerge
(LONDON) The euro rose against the US dollar yesterday, hitting the day’s high as a Greek government source cited details of fresh plans to tackle Greece’s debt problems.
Plan for Fed consumer protection unit gets flak
(WASHINGTON) A US Senate compromise to create a consumer protection unit in the Federal Reserve encountered a wall of resistance over the scope of the powers planned for the regulator.
Saudi Arabia cuts Asian, raises US crude prices
(LONDON) Top world oil exporter Saudi Arabia cut the official selling price of most of its crude grades in April to customers in Asia and raised most prices to the United States, the state oil company said on Tuesday.
If the shoe fits
The sculpture ‘Cinderella’ by Joana Vasconcelos on display at the press premiere of her exhibition ‘Netless’, at the Berardo contemporary art museum here on Monday.
Hedge funds still below ‘high-water’ marks
(LONDON) Hedge fund investors could be left out of pocket as managers conjure up shortcuts to earn once again the lucrative bonuses based on performance fees that were a feature of the industry before the credit crisis.
US may call for brake override system
(NEW YORK) The Obama administration may recommend that carmakers install a brake override system that is intended to prevent the sudden acceleration episodes that have led to recalls of millions of Toyotas, the Transportation Secretary, Ray LaHood, said on Tuesday.
US Service industries grew more than forecast in Feb
(WASHINGTON) Service industries in the US expanded in February at the fastest pace since October 2007, a sign the recovery is broadening.
Obama proposes energy rebates for homeowners
(SAVANNAH, Georgia) President Barack Obama on Tuesday proposed rebates of up to US$3,000 to help homeowners pay for the cost of making their homes more energy efficient, a US$6 billion programme intended to create jobs.
‘The Hurt Locker’ producer barred from Oscars
(LOS ANGELES) The Hurt Locker producer Nicolas Chartier was barred from attending Sunday’s Oscars ceremony after he solicited votes and disparaged a competing film vying for best picture.
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