Sunday, September 30, 2007
Friday, September 28, 2007
US Federal Reserve injects billion into markets
WASHINGTON : The Federal Reserve added US$38 billion in temporary reserves to the US money markets on Thursday in four separate operations to ease tight credit conditions.
The Federal Bank of New York added US$6 billion in 14-day repurchase agreements, US$20 billion in 14-day repurchase agreements, US$7 billion in seven-day repurchase agreements and US$5 billion in one-day repos.
The US central bank typically buys billions of dollars worth of securities from major banks, pumping extra cash into the banking system, which the banks are obliged to repurchase at a later date.
The New York Fed, which conducts the operations, has injected hundreds of billions of dollars into the financial system since early August, when credit flows seized up due to problems linked to the distressed US mortgage market.
<---------- Hope the bear is totally gone by now
The Federal Bank of New York added US$6 billion in 14-day repurchase agreements, US$20 billion in 14-day repurchase agreements, US$7 billion in seven-day repurchase agreements and US$5 billion in one-day repos.
The US central bank typically buys billions of dollars worth of securities from major banks, pumping extra cash into the banking system, which the banks are obliged to repurchase at a later date.
The New York Fed, which conducts the operations, has injected hundreds of billions of dollars into the financial system since early August, when credit flows seized up due to problems linked to the distressed US mortgage market.
<---------- Hope the bear is totally gone by now
Thursday, September 27, 2007
(Stock Pick) Sing Lun Holdings - New business strategy to propel growth
Adoption of a 3-pronged growth strategy of (i) operational excellence, (ii) product leadership and (iii) customer intimacy, had helped Sing Lun turn in a stellar performance in 1H07.
As it moves to be an integrated supply chain management provider, earnings are expected to continue on its strong growth momentum.
In line with its new business plans, Sing Lun recently made a US$7.4m investment in Vietnam, to boost up its production capacity.
Recommending to BUY with a 12-month target price of S$0.33 for a stock with healthy growth momentum and dividend yield.
As it moves to be an integrated supply chain management provider, earnings are expected to continue on its strong growth momentum.
In line with its new business plans, Sing Lun recently made a US$7.4m investment in Vietnam, to boost up its production capacity.
Recommending to BUY with a 12-month target price of S$0.33 for a stock with healthy growth momentum and dividend yield.
Tuesday, September 25, 2007
Wall Street shifts to reverse after GM workers strike
NEW YORK : Wall Street shares made a U-turn and closed lower on Monday as a strike at auto giant General Motors prompted investors to lock in profits from last week's strong performance.
The Dow Jones Industrial Average lost 61.13 points (0.44 percent) to close at 13,759.06 after giving back gains of more than 50 points in early trade.
The tech-heavy Nasdaq shed 3.27 points (0.12 percent) to 2,667.95 and the broad-market Standard & Poor's 500 index retreated 8.02 points (0.53 percent) to 1,517.73.
With no major economic data on tap, the market started on an upbeat note on momentum from last week's strong gains inspired by a half-point Federal Reserve rate cut, which sparked a broader market rise of some 2.8 percent.
But gains faded after the United Auto Workers union declared a strike at GM after failing to reach a contract deal by a deadline of 11:00 am (1500 GMT), in a surprise for some observers, which prompted some profit taking.
"Without any major economic or financial data, the losses are most attributed to some profit taking from last week, in addition to the UAW strike news," wrote analysts at Briefing.com.
"Although prior reports had indicated substantive progress had been made in their negotiations, a news conference held by the UAW to discuss the strike cast serious doubt on those reports."
GM highlighted the situation on Wall Street: after strong gains early on hopes of a contract settlement, its shares fell 0.57 percent to 34.74 dollars.
<---------- This strike is not on the US economic calender... :(
The Dow Jones Industrial Average lost 61.13 points (0.44 percent) to close at 13,759.06 after giving back gains of more than 50 points in early trade.
The tech-heavy Nasdaq shed 3.27 points (0.12 percent) to 2,667.95 and the broad-market Standard & Poor's 500 index retreated 8.02 points (0.53 percent) to 1,517.73.
With no major economic data on tap, the market started on an upbeat note on momentum from last week's strong gains inspired by a half-point Federal Reserve rate cut, which sparked a broader market rise of some 2.8 percent.
But gains faded after the United Auto Workers union declared a strike at GM after failing to reach a contract deal by a deadline of 11:00 am (1500 GMT), in a surprise for some observers, which prompted some profit taking.
"Without any major economic or financial data, the losses are most attributed to some profit taking from last week, in addition to the UAW strike news," wrote analysts at Briefing.com.
"Although prior reports had indicated substantive progress had been made in their negotiations, a news conference held by the UAW to discuss the strike cast serious doubt on those reports."
GM highlighted the situation on Wall Street: after strong gains early on hopes of a contract settlement, its shares fell 0.57 percent to 34.74 dollars.
<---------- This strike is not on the US economic calender... :(
Monday, September 24, 2007
US economy has 'less than 50-50' odds of recession: Greenspan
WASHINGTON - Former Federal Reserve chairman Alan Greenspan said Sunday the US economy has a better than evens chance of beating a recession but warned that a housing slowdown could hit spending hard.
"We're heading for a slowdown," he said on NBC in the latest television appearance to publicise his new memoirs, "The Age of Turbulence: Adventures in a New World."
"My own guess is the odds are less than 50-50 that we're heading to a recession, but there is no question we've got significant pressure on home prices, which I expect to move down quite considerably lower," he said. "
And that will curtail the net housing wealth of the American household, and history tells us that causes some weakness. It's too soon to call this one really."
Greenspan's memoirs lay out explosive charges such as that President George W. Bush was driven to overthrow Iraqi leader Saddam Hussein in a large part by a lust for Iraq's oil.
He also accuses Bush of abandoning the Republican party's traditional fiscal restraint through failing to veto "out-of-control" spending by Congress.
On the oil question, Greenspan told NBC that his concern was rather that Saddam was trying to seize control of the entire region and could use the resultant wealth to acquire a nuclear weapon.
"Having him out of power was critical to me," whether by an internal coup or by war, he said.
<--------- He speaks again
"We're heading for a slowdown," he said on NBC in the latest television appearance to publicise his new memoirs, "The Age of Turbulence: Adventures in a New World."
"My own guess is the odds are less than 50-50 that we're heading to a recession, but there is no question we've got significant pressure on home prices, which I expect to move down quite considerably lower," he said. "
And that will curtail the net housing wealth of the American household, and history tells us that causes some weakness. It's too soon to call this one really."
Greenspan's memoirs lay out explosive charges such as that President George W. Bush was driven to overthrow Iraqi leader Saddam Hussein in a large part by a lust for Iraq's oil.
He also accuses Bush of abandoning the Republican party's traditional fiscal restraint through failing to veto "out-of-control" spending by Congress.
On the oil question, Greenspan told NBC that his concern was rather that Saddam was trying to seize control of the entire region and could use the resultant wealth to acquire a nuclear weapon.
"Having him out of power was critical to me," whether by an internal coup or by war, he said.
<--------- He speaks again
Sunday, September 23, 2007
US Economic Calender (24 Sept 07 to 28 Sept 07)
<--------- Hopefully Monday (24 Sept) will be a quiet session barring of course surprise troubles in the credit markets.
Saturday, September 22, 2007
US stocks extend rate-cut rally as corporate earnings cheer
NEW YORK - US stocks gained ground Friday as upbeat corporate earnings reports helped extend this week's powerful rally celebrating a Federal Reserve interest-rate cut.
The Dow Jones Industrial Average rose 53.49 points (0.39 percent) to close at 13,820.19 and the tech-heavy Nasdaq climbed 16.93 points (0.64 percent) to 2,671.22.
The broad-market Standard & Poor's 500 index advanced 6.97 points (0.46 percent) to 1,525.72.
Positive corporate earnings from Oracle and Nike announced after the market closed Thursday lifted sentiment in a day bereft of economic data.
"We had some good corporate news that is helping some sectors," said Peter Cardillo of Avalon Partners.
Wall Street's bullish sentiment revived after Thursday's modest drift lower in profit taking after a strong two-day rally that saw the Dow industrials adding more than 400 points.
The surge was triggered by the Fed's reduction Tuesday of its base federal funds rate by a hefty half point, to 4.75 percent. The Fed had held the rate steady at 5.25 percent since June 2003.
<---------- A big thanks to Mr Bernanke
The Dow Jones Industrial Average rose 53.49 points (0.39 percent) to close at 13,820.19 and the tech-heavy Nasdaq climbed 16.93 points (0.64 percent) to 2,671.22.
The broad-market Standard & Poor's 500 index advanced 6.97 points (0.46 percent) to 1,525.72.
Positive corporate earnings from Oracle and Nike announced after the market closed Thursday lifted sentiment in a day bereft of economic data.
"We had some good corporate news that is helping some sectors," said Peter Cardillo of Avalon Partners.
Wall Street's bullish sentiment revived after Thursday's modest drift lower in profit taking after a strong two-day rally that saw the Dow industrials adding more than 400 points.
The surge was triggered by the Fed's reduction Tuesday of its base federal funds rate by a hefty half point, to 4.75 percent. The Fed had held the rate steady at 5.25 percent since June 2003.
<---------- A big thanks to Mr Bernanke
Mattel apologises to China on toy recalls
BEIJING : US toy giant Mattel issued a startling apology to China Friday, saying the vast majority of recent recalls of Chinese-made products were due to design flaws it had committed itself.
"It is very important for everyone to understand that the vast majority of those products recalled were the result of a design flaw in Mattel, not through the manufacturing flaw in China's manufacturers," said Thomas Debrowski, Mattel's executive vice president of worldwide operations.
Debrowski made the remarks while meeting in Beijing with Li Changjiang, the head of China's General Administration of Quality Supervision, Inspection and Quarantine, the nation's top agency in charge of product quality.
"Mattel takes full responsibility for those recalls and I would like to apologise personally to you, the Chinese people and all of the customers who received toys that have been manufactured," Debrowski told Li in front of a group of reporters.
The toy recalls have helped inflame a growing global scare about the safety of products produced in China, an issue that could potentially be damaging to the Asian export juggernaut.
"These recalls have been very, very devastating to our company. We make products for 150 countries around the world, but no one has been hurt more by the recall other than Mattel," Debrowski said. "
We understand and appreciate deeply the issues this has caused for the reputation of Chinese manufacturers," he said.
Mattel recalled around 848,000 toys earlier this month -- its third recall of Chinese-made products this summer -- due to high lead levels in the paint used.
The move came after the company last month recalled 18 million Chinese-made products worldwide over high lead levels and small magnets that have seriously injured at least three children.
China had blamed the Mattel recalls largely on design faults by the company.
Li said Friday he was pleased that Mattel had admitted that of the 21 million toy products that it recalled, 87 percent were due to design problems and only 13 percent due to the lead paint problem.
"I hope that through our common efforts and cooperation we can provide more high-quality toys for children around the world," he said. "
And I believe Chinese toys will bring joy to children from all over the world." China is handing out severe punishment to Chinese manufacturers who are responsible, Li said.
China has already made huge efforts to overhaul the toy industry, especially the export toy industry, and either suspended or revoked the licences of 300 manufacturers.
"That demonstrates that the Chinese government attached a high level of importance to safety," Li said.
"Even if only one percent of our products have problems, we will pay 100 percent attention."
China is the world's top toy exporter, selling 22 billion toys overseas last year, or 60 percent of the world's total.
<--------------Mattel 1 : 0 China => Mattel 1 : 10 China
"It is very important for everyone to understand that the vast majority of those products recalled were the result of a design flaw in Mattel, not through the manufacturing flaw in China's manufacturers," said Thomas Debrowski, Mattel's executive vice president of worldwide operations.
Debrowski made the remarks while meeting in Beijing with Li Changjiang, the head of China's General Administration of Quality Supervision, Inspection and Quarantine, the nation's top agency in charge of product quality.
"Mattel takes full responsibility for those recalls and I would like to apologise personally to you, the Chinese people and all of the customers who received toys that have been manufactured," Debrowski told Li in front of a group of reporters.
The toy recalls have helped inflame a growing global scare about the safety of products produced in China, an issue that could potentially be damaging to the Asian export juggernaut.
"These recalls have been very, very devastating to our company. We make products for 150 countries around the world, but no one has been hurt more by the recall other than Mattel," Debrowski said. "
We understand and appreciate deeply the issues this has caused for the reputation of Chinese manufacturers," he said.
Mattel recalled around 848,000 toys earlier this month -- its third recall of Chinese-made products this summer -- due to high lead levels in the paint used.
The move came after the company last month recalled 18 million Chinese-made products worldwide over high lead levels and small magnets that have seriously injured at least three children.
China had blamed the Mattel recalls largely on design faults by the company.
Li said Friday he was pleased that Mattel had admitted that of the 21 million toy products that it recalled, 87 percent were due to design problems and only 13 percent due to the lead paint problem.
"I hope that through our common efforts and cooperation we can provide more high-quality toys for children around the world," he said. "
And I believe Chinese toys will bring joy to children from all over the world." China is handing out severe punishment to Chinese manufacturers who are responsible, Li said.
China has already made huge efforts to overhaul the toy industry, especially the export toy industry, and either suspended or revoked the licences of 300 manufacturers.
"That demonstrates that the Chinese government attached a high level of importance to safety," Li said.
"Even if only one percent of our products have problems, we will pay 100 percent attention."
China is the world's top toy exporter, selling 22 billion toys overseas last year, or 60 percent of the world's total.
<--------------Mattel 1 : 0 China => Mattel 1 : 10 China
Friday, September 21, 2007
STOCKS NEWS ASIA - Asian ADRs dip on US inflation worry
HONG KONG, Sept 21 (Reuters) - Asian stocks listed on Wall Street fell 0.5 percent as U.S. stocks snapped a two-day rally on worries about inflation after the dollar extended its decline and oil hit yet another record high.
Suggesting a lower open for Tokyo stocks, Nikkei futures traded in Chicago ended lower than their peers in Osaka.
MSCI's measure of Asia Pacific stocks excluding Japan rallied 1.2 percent to a record closing high on Thursday after the Federal Reserve's aggressive 50 basis point rate cut earlier in the week helped boost confidence.
<--------------- Friday should be a shorting day.. I guess
Suggesting a lower open for Tokyo stocks, Nikkei futures traded in Chicago ended lower than their peers in Osaka.
MSCI's measure of Asia Pacific stocks excluding Japan rallied 1.2 percent to a record closing high on Thursday after the Federal Reserve's aggressive 50 basis point rate cut earlier in the week helped boost confidence.
<--------------- Friday should be a shorting day.. I guess
Thursday, September 20, 2007
(Stock Pick) Hupsteel Limited - Striking when the iron is hot!
Hupsteel has shown great foresight and adaptability in capitalising on business opportunities.
Management has reaped the benefits of focusing on the product line that has been giving it the highest turnover - structural steel.
Riding along the thirst for industrial steel stemming from the boom in the oil & gas, marine and construction industries, Hupsteel’s financial performance has been very impressive, with its top line increasing five fold from FY03 to FY07, and its bottom line jumping a staggering 22 times since between the same period.
The local property and construction sector is expected to be buoyant for the next 2 years to say the least, and coupled with the fact that oil-rigs, drill-ships, FPSOs and vessel orders from around the world are full for the next 3 years, it should be a rosy picture going forward for Hupsteel.
DMG has forecasted another 20% earnings growth into FY08, which translates to an EPS of S$0.075.
Current Price (as at 20/09/07) - S$0.56
Target Price given by DMG - S$0.71
Management has reaped the benefits of focusing on the product line that has been giving it the highest turnover - structural steel.
Riding along the thirst for industrial steel stemming from the boom in the oil & gas, marine and construction industries, Hupsteel’s financial performance has been very impressive, with its top line increasing five fold from FY03 to FY07, and its bottom line jumping a staggering 22 times since between the same period.
The local property and construction sector is expected to be buoyant for the next 2 years to say the least, and coupled with the fact that oil-rigs, drill-ships, FPSOs and vessel orders from around the world are full for the next 3 years, it should be a rosy picture going forward for Hupsteel.
DMG has forecasted another 20% earnings growth into FY08, which translates to an EPS of S$0.075.
Current Price (as at 20/09/07) - S$0.56
Target Price given by DMG - S$0.71
(Stock Pick) FJ Benjamin - More cash returns?
FJB has recently announced the listing of its associate, St. James Power Station through a reverse takeover.
The RTO is targeted for completion by 1Q 2008. FJB’s 30.4% stake is valued between S$24.3m – S$32.8m, depending on the financial performance of St. James.
Post listing, FJB’s stake will be reduced to 25.2% with potential for further dilution upon a subsequent placement.
Current Price (as at 20/09/07) - S$0.85
Target Price given by DMG - S$1.03.
The RTO is targeted for completion by 1Q 2008. FJB’s 30.4% stake is valued between S$24.3m – S$32.8m, depending on the financial performance of St. James.
Post listing, FJB’s stake will be reduced to 25.2% with potential for further dilution upon a subsequent placement.
Current Price (as at 20/09/07) - S$0.85
Target Price given by DMG - S$1.03.
SGX to cut bid size for shares, slashing trading costs
INVESTORS will soon find that minute-by-minute shareprice movements in many Singapore stocks will be smaller than before - and that could save them money.
The Singapore Exchange (SGX) is revamping the size of share-trading bid intervals in a move to slash the costs of trading.
In practice, by January next year, shares with a traded value of more than $10, for example, will move by units of two cents instead of 10 cents.
The revisions follow similar proposals that were unveiled in May.
Said SGX's senior executive vice-president and head of markets, Mr Gan Seow Ann: 'With a narrower bid-ask spread, market participants can expect greater efficiency in trade execution.
'The changes will enhance the overall competitiveness of our securities market.'
For shares priced between $1 and $9.99, SGX will cut bid intervals to just one cent - which now applies only to stocks traded between $1 and $2.99. That means the movement for stocks between $3 and $4.98 will go down from the current two cents, while that for stocks priced between $5 and $9.95 will fall from five cents currently.
For stocks above $10, SGX will slash the interval from a hefty 10 cents to two cents.
The interval for penny stocks - those below $1 - stays at half a cent.
The interval change means, for example, a CapitaLand share, which closed at $8.25 yesterday, would have moved up by only one cent to $8.26, instead of five cents to $8.30, if it had opened one bid higher today. In that instance, an investor would pay $40 less for every 1,000 CapitaLand shares he had bought.
And a DBS Group Holdings share, which closed at $20.10 yesterday, would rise by two cents to $20.12, not 10 cents to $20.20, if it jumps by one bid. An investor will save $80 buying one lot of 1,000 shares.
Another change involves 'forced' bids. Currently, a trader has to 'force' in his order if his price is more than six bids above or below the current price.
With the revision, SGX has now widened the threshold to 10 bids. This means that an investor can now type in an order within 10 bids of the last traded price without having to use the 'force' key to get his trade through.
Market experts offered a mixed response. Said CIMB-GK research head Song Seng Wun: 'It's good for traders as it offers more flexibility and a quicker turnaround. It'll create more opportunities, especially for program traders, and create a more efficient market.'
However, not everyone was as delighted. Said one dealer: 'The profit margins of day traders will suffer as it's now harder for the share price to move. For counters above $10, you'll need to move five steps to make the same amount of money. But it's generally good for the investor.''
Added regular Straits Times Forum Page writer Narayana Narayana, who was a broker for 40 years: 'For the man on the street, this doesn't make much difference because it's still half a cent for those stocks below $1.'
<------- Guess this is not a good news for people who contra
The Singapore Exchange (SGX) is revamping the size of share-trading bid intervals in a move to slash the costs of trading.
In practice, by January next year, shares with a traded value of more than $10, for example, will move by units of two cents instead of 10 cents.
The revisions follow similar proposals that were unveiled in May.
Said SGX's senior executive vice-president and head of markets, Mr Gan Seow Ann: 'With a narrower bid-ask spread, market participants can expect greater efficiency in trade execution.
'The changes will enhance the overall competitiveness of our securities market.'
For shares priced between $1 and $9.99, SGX will cut bid intervals to just one cent - which now applies only to stocks traded between $1 and $2.99. That means the movement for stocks between $3 and $4.98 will go down from the current two cents, while that for stocks priced between $5 and $9.95 will fall from five cents currently.
For stocks above $10, SGX will slash the interval from a hefty 10 cents to two cents.
The interval for penny stocks - those below $1 - stays at half a cent.
The interval change means, for example, a CapitaLand share, which closed at $8.25 yesterday, would have moved up by only one cent to $8.26, instead of five cents to $8.30, if it had opened one bid higher today. In that instance, an investor would pay $40 less for every 1,000 CapitaLand shares he had bought.
And a DBS Group Holdings share, which closed at $20.10 yesterday, would rise by two cents to $20.12, not 10 cents to $20.20, if it jumps by one bid. An investor will save $80 buying one lot of 1,000 shares.
Another change involves 'forced' bids. Currently, a trader has to 'force' in his order if his price is more than six bids above or below the current price.
With the revision, SGX has now widened the threshold to 10 bids. This means that an investor can now type in an order within 10 bids of the last traded price without having to use the 'force' key to get his trade through.
Market experts offered a mixed response. Said CIMB-GK research head Song Seng Wun: 'It's good for traders as it offers more flexibility and a quicker turnaround. It'll create more opportunities, especially for program traders, and create a more efficient market.'
However, not everyone was as delighted. Said one dealer: 'The profit margins of day traders will suffer as it's now harder for the share price to move. For counters above $10, you'll need to move five steps to make the same amount of money. But it's generally good for the investor.''
Added regular Straits Times Forum Page writer Narayana Narayana, who was a broker for 40 years: 'For the man on the street, this doesn't make much difference because it's still half a cent for those stocks below $1.'
<------- Guess this is not a good news for people who contra
Wednesday, September 19, 2007
SE Asia Stocks-Surge on U.S. rate cut, Singapore at 2-mth high
By Koh Gui Qing SINGAPORE, Sept 19 (Reuters) - Southeast Asian stocks surged on Wednesday, with Singapore shares posting their best one-day gain in a month, as a bold U.S. interest rate cut powered blue chips such as the region's top telecom SingTel and lender DBS.
Investors said the U.S. Federal Reserve interest rate cut overnight by half a percentage point to 4.75 percent allayed their fears about a sharp slowdown in the U.S. economy, Asia's largest export market.
"It's really a relief that the U.S. Fed is focusing on the economy rather than inflation," said Khiem Do, who manages more than $400 million at Baring Asset Management in Hong Kong.
"At least the fear of a U.S. recession has diminished for now," he said.
Investors expect the lower U.S. interest rates to prompt Asian central banks to cut rates as well. Central banks in the Philippines and Indonesia said on Wednesday there was room for more rate cuts. [ID:nSP65482] [ID:nJAK95365] Singapore's key Straits Times Index <.STI> jumped 3.4 percent -- its biggest one-day rise in percentage terms since Aug. 20 -- to a 2-month high. As of Wednesday's close, the index is 2.6 percent below its record high of 3,688.58 points hit on July 16.
Elsewhere, the Indonesian stock index <.JKSE> jumped 3.3 percent to its highest level since Aug. 1, Malaysian shares <.KLSE> added 1.6 percent, and Thai shares <.SETI> were up 1.2 percent by 0937 GMT. The Philippines' key index <.PSI> climbed 2.2 percent, and the Vietnam stock market <.VNI> rose 1.2 percent.
In Singapore, blue-chip stocks led gains. Singapore Telecommunications (SingTel) , Southeast Asia's largest telecom, jumped 4.2 percent to S$3.98, a level last seen in June 1996. Keppel Corp , the world's top rig builder, climbed 4.5 percent.
Oil prices climbed over $82 a barrel on Wednesday, near a record reached a day earlier. [ID:nSP99232] Shares in property developers and banks -- which stand to benefit from lower interest rates thanks to stronger demand for real estate and loans -- rose too.
Southeast Asia's top two property developers CapitaLand and City Developments jumped 3.8 percent and 4.6 percent, respectively.
DBS Group , Southeast Asia's largest lender, added 4.2 percent, United Overseas Bank , Singapore's second-biggest lender, climbed 3.9 percent, and Oversea-Chinese Banking Corp rose 3.5 percent.
Lorraine Tan, regional strategist at Standard & Poor's, said while investors should expect more financial institutions to fall victim to the U.S. subprime mortgage crisis, she overweights banking stocks in Singapore, Malaysia and Hong Kong.
This is because the subprime fallout would have limited impact on their earnings, she said.
"There should still be some bad news coming up, but whenever there is a dip in Asia, we see it as a buying opportunity," Tan said.
In Malaysia, the largest lender Malayan Banking Bhd rose 1.8 percent. Bumiputra-Commerce Holdings , the second-biggest bank, added 1.9 percent, while Public Bank Bhd , the No. 3 bank, climbed 1.6 percent.
In Jakarta, PT Bank Mandiri Tbk , the largest lender, leapt 6.3 percent, and PT Bank Central Asia Tbk , the second-biggest lender, added 3.4 percent.
<-------- Will this continue tomorrow?
Investors said the U.S. Federal Reserve interest rate cut overnight by half a percentage point to 4.75 percent allayed their fears about a sharp slowdown in the U.S. economy, Asia's largest export market.
"It's really a relief that the U.S. Fed is focusing on the economy rather than inflation," said Khiem Do, who manages more than $400 million at Baring Asset Management in Hong Kong.
"At least the fear of a U.S. recession has diminished for now," he said.
Investors expect the lower U.S. interest rates to prompt Asian central banks to cut rates as well. Central banks in the Philippines and Indonesia said on Wednesday there was room for more rate cuts. [ID:nSP65482] [ID:nJAK95365] Singapore's key Straits Times Index <.STI> jumped 3.4 percent -- its biggest one-day rise in percentage terms since Aug. 20 -- to a 2-month high. As of Wednesday's close, the index is 2.6 percent below its record high of 3,688.58 points hit on July 16.
Elsewhere, the Indonesian stock index <.JKSE> jumped 3.3 percent to its highest level since Aug. 1, Malaysian shares <.KLSE> added 1.6 percent, and Thai shares <.SETI> were up 1.2 percent by 0937 GMT. The Philippines' key index <.PSI> climbed 2.2 percent, and the Vietnam stock market <.VNI> rose 1.2 percent.
In Singapore, blue-chip stocks led gains. Singapore Telecommunications (SingTel) , Southeast Asia's largest telecom, jumped 4.2 percent to S$3.98, a level last seen in June 1996. Keppel Corp , the world's top rig builder, climbed 4.5 percent.
Oil prices climbed over $82 a barrel on Wednesday, near a record reached a day earlier. [ID:nSP99232] Shares in property developers and banks -- which stand to benefit from lower interest rates thanks to stronger demand for real estate and loans -- rose too.
Southeast Asia's top two property developers CapitaLand and City Developments jumped 3.8 percent and 4.6 percent, respectively.
DBS Group , Southeast Asia's largest lender, added 4.2 percent, United Overseas Bank , Singapore's second-biggest lender, climbed 3.9 percent, and Oversea-Chinese Banking Corp rose 3.5 percent.
Lorraine Tan, regional strategist at Standard & Poor's, said while investors should expect more financial institutions to fall victim to the U.S. subprime mortgage crisis, she overweights banking stocks in Singapore, Malaysia and Hong Kong.
This is because the subprime fallout would have limited impact on their earnings, she said.
"There should still be some bad news coming up, but whenever there is a dip in Asia, we see it as a buying opportunity," Tan said.
In Malaysia, the largest lender Malayan Banking Bhd rose 1.8 percent. Bumiputra-Commerce Holdings , the second-biggest bank, added 1.9 percent, while Public Bank Bhd , the No. 3 bank, climbed 1.6 percent.
In Jakarta, PT Bank Mandiri Tbk , the largest lender, leapt 6.3 percent, and PT Bank Central Asia Tbk , the second-biggest lender, added 3.4 percent.
<-------- Will this continue tomorrow?
US stocks rally after Fed cut key interest rates
NEW YORK : US stocks staged an exuberant rally on Tuesday after the Federal Reserve slashed key interest rates by a half point to ease tight credit and housing market distress.
The Dow Jones Industrial Average soared 335.97 points (2.51 percent) to close at 13,739.39 and the tech-heavy Nasdaq advanced 70.00 points (2.71 percent) to 2,651.66.
The broad-market Standard & Poor's 500 index climbed 43.13 points (2.92 percent) to finish at 1,519.78.
Investors cheered the unanimous decision by Federal Reserve policymakers to cut the federal funds rate, which banks charge each other for overnight loans, by a hefty half point to 4.75 percent.
It was the first reduction in the benchmark rate in four years and was expected to ease tight credit throughout the economy.
<---------- Hip Hip Hooray!
The Dow Jones Industrial Average soared 335.97 points (2.51 percent) to close at 13,739.39 and the tech-heavy Nasdaq advanced 70.00 points (2.71 percent) to 2,651.66.
The broad-market Standard & Poor's 500 index climbed 43.13 points (2.92 percent) to finish at 1,519.78.
Investors cheered the unanimous decision by Federal Reserve policymakers to cut the federal funds rate, which banks charge each other for overnight loans, by a hefty half point to 4.75 percent.
It was the first reduction in the benchmark rate in four years and was expected to ease tight credit throughout the economy.
<---------- Hip Hip Hooray!
Fed cuts base rate half point to 4.75%
WASHINGTON : The Federal Reserve on Tuesday slashed its base federal funds rate by a half point to 4.75 percent, in what analysts called a bold move to stimulate an economy imperiled by housing and credit market stress.
The Federal Open Market Committee, in a unanimous decision after a one-day meeting, also cut its discount rate for direct central bank loans by 50 basis points to 5.25 percent.
"Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time," the FOMC said in a statement.
The statement said that despite "moderate" economic growth in the first half, tighter credit conditions create a "potential to intensify the housing correction and to restrain economic growth more generally.
" The cut in the federal funds rate is likely to lead to a lowering of borrowing costs across the economy, for consumers and businesses alike. The Fed, which has not cut rates since 2003, had held this rate at 5.25 percent since June 2006.
"I think the Fed delivered a healthy dose of monetary medicine to the economy and housing market," said Scott Anderson, senior economist at Wells Fargo.
"I think it will be viewed as an aggressive move by the Fed to avert an economic recession."
The policy-setting committee, which was forced to reconsider its tough monetary stand when financial markets were roiled by fears of a wider economic crisis, had been widely expected to cut interest rates.
But analysts had been divided on whether the central bank would move by a quarter point or a bolder 50 basis points. Some economists said a cut might fuel inflation or bring back the easy-money conditions that created the problems.
"Readings on core inflation have improved modestly this year," the FOMC said.
"However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully."
The panel said developments in financial markets since the last regular meeting "have increased the uncertainty surrounding the economic outlook" and that it would "continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
The wording suggests the central bank is not promising further rate cuts but would wait to see if economic and credit conditions return to normal, said analysts.
"It's a signal that they'll assess the economic risks as the data come in," said Craig Alexander, deputy chief economist at TD Bank Financial Group. "It may be the Fed does not want the market to price in a major easing cycle."
Avery Shenfeld, economist at CIBC World Markets, said that although the Fed is trying to send a message not to count on any more reductions, "I doubt the Fed is done. I think they are right and that the economy is softening."
Andrew Busch, analyst at BMO Financial Markets, said however that the rate cut is a rescue for those who "made poor credit decisions without the consequences of market discipline."
"Like a teenager with a car and no curfew, we'll be having more problems down the road from these actions. But for now, who cares? Everyone's happy and it keeps the politicians at bay," Busch added.
The US economy expanded at a robust 4.0 percent pace in the second quarter, but many experts view that as a statistical fluke that belies soft conditions. The loss of 4,000 jobs in August, say some, point to deep problems as the housing slump and credit problems drag on growth.
In August, the Fed announced a half-point cut in its discount rate in an effort to open credit markets and reduce the stigma associated with direct loans from the central bank. - AFP/de
<--------- Congratz to those who vested... time to recoup losses!
The Federal Open Market Committee, in a unanimous decision after a one-day meeting, also cut its discount rate for direct central bank loans by 50 basis points to 5.25 percent.
"Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time," the FOMC said in a statement.
The statement said that despite "moderate" economic growth in the first half, tighter credit conditions create a "potential to intensify the housing correction and to restrain economic growth more generally.
" The cut in the federal funds rate is likely to lead to a lowering of borrowing costs across the economy, for consumers and businesses alike. The Fed, which has not cut rates since 2003, had held this rate at 5.25 percent since June 2006.
"I think the Fed delivered a healthy dose of monetary medicine to the economy and housing market," said Scott Anderson, senior economist at Wells Fargo.
"I think it will be viewed as an aggressive move by the Fed to avert an economic recession."
The policy-setting committee, which was forced to reconsider its tough monetary stand when financial markets were roiled by fears of a wider economic crisis, had been widely expected to cut interest rates.
But analysts had been divided on whether the central bank would move by a quarter point or a bolder 50 basis points. Some economists said a cut might fuel inflation or bring back the easy-money conditions that created the problems.
"Readings on core inflation have improved modestly this year," the FOMC said.
"However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully."
The panel said developments in financial markets since the last regular meeting "have increased the uncertainty surrounding the economic outlook" and that it would "continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
The wording suggests the central bank is not promising further rate cuts but would wait to see if economic and credit conditions return to normal, said analysts.
"It's a signal that they'll assess the economic risks as the data come in," said Craig Alexander, deputy chief economist at TD Bank Financial Group. "It may be the Fed does not want the market to price in a major easing cycle."
Avery Shenfeld, economist at CIBC World Markets, said that although the Fed is trying to send a message not to count on any more reductions, "I doubt the Fed is done. I think they are right and that the economy is softening."
Andrew Busch, analyst at BMO Financial Markets, said however that the rate cut is a rescue for those who "made poor credit decisions without the consequences of market discipline."
"Like a teenager with a car and no curfew, we'll be having more problems down the road from these actions. But for now, who cares? Everyone's happy and it keeps the politicians at bay," Busch added.
The US economy expanded at a robust 4.0 percent pace in the second quarter, but many experts view that as a statistical fluke that belies soft conditions. The loss of 4,000 jobs in August, say some, point to deep problems as the housing slump and credit problems drag on growth.
In August, the Fed announced a half-point cut in its discount rate in an effort to open credit markets and reduce the stigma associated with direct loans from the central bank. - AFP/de
<--------- Congratz to those who vested... time to recoup losses!
Tuesday, September 18, 2007
Fed faces day of reckoning as markets clamour for rate cut
WASHINGTON : Federal Reserve policymakers face a moment of truth Tuesday as they meet on interest rates amid a sputtering economy, but with some arguing against a return to easy-money conditions blamed for the problems.
The Federal Open Market Committee, set to announce a decision at 1815 GMT Tuesday, is widely expected to cut interest rates in a bid to ease stress in the housing and credit markets, and head off a potential recession.
Most analysts say they expect the FOMC, which has held its federal funds rate at 5.25 percent since June 2006, to cut the benchmark rate by 25 or 50 basis points, which could lead to lower borrowing costs for many consumers and businesses.
A rate cut "would reflect an effort to contain the downside risks to growth associated with the swift tightening in financial conditions this summer in an already subpar economy," said Citigroup economist Robert
DiClemente, who predicts a half-point cut. DiClemente says the current rate of 5.25 percent is "higher than neutral," or holding back economic growth, and that a failure to cut rates "could risk an undesirable breach in investor confidence and broader damage to the expansion."
"The sooner we get to 4.5 percent or thereabouts, the better the chances of stabilising the economic outlook and the financial system that supports it," DiClemente said.
Some analysts say that if the Fed fails to take bold action such as a half-point cut, it could trigger more turmoil in financial markets, causing more failures of home lenders and mortgage defaults and prompting a freezing up of broader credit markets.
"We strongly believe that if the Fed only cuts rates by 25 basis points even with a strongly worded FOMC statement to commit to more easing if need be, there could be a significant disappointment trade in the financial markets, especially in stocks," said Deutsche Bank economists Joseph LaVorgna and Carl Riccadonna in a note to clients.
"If policymakers move too slowly now, they run the risk that more considerable damage will be inflicted on the financial markets and the real economy, and resultantly they will have to cut rates more aggressively in the long run."
Others claim that economic conditions do not warrant a rate cut, and that such a move would simply be providing more of the easy money that fuelled the boom-and-bust cycle.
"The US economy is not booming...However, the economy is not collapsing either," argued Eugenio Aleman, senior economist at Wells Fargo, who says it would be wrong for the Fed to buckle to market pressure.
"A fed funds cut will not bring back the US housing market. A fed funds cut will not bring back the commercial paper market," he said.
Aleman said the Fed must consider what happens if it cuts rates and the housing market remains depressed:
"Then the markets will ask for another rate cut, and another, and another, and another - and then what?" he said.
"The fact of the matter is that the sub-prime mess was a bad investment decision from the very beginning and was brought about by having very low interest rates for a very long period of time. And the only way to go forward is to flush it out, take the loss and move forward, not bring it back."
Brian Wesbury at First Trust Portfolios agreed, saying: "We still hold out hope the Fed will do the right thing, which is not cut rates at all. Cutting rates, when they are already too low, will 'lock in' inflation, force more rate hikes later, and puts the Fed's credibility as an inflation fighter at risk."
The US economy expanded at a robust 4.0 percent pace in the second quarter, but many experts view that as a statistical fluke that belies soft conditions.
The loss of 4,000 jobs in August, say some, point to deep problems as the housing slump and credit problems drag on growth.
Of key importance is the message sent to financial markets.
Chairman Ben Bernanke wants to ease economic stress while avoiding the impression that he is bailing out speculators and hedge funds.
"The decision to cut interest rates by 25 or 50 basis points will not be nearly as important as the Fed's language," said Nick Raich, analyst at financial group National City.
"We believe market bulls will need a Fed that will show it is willing to do whatever it takes to prevent the economy from slipping into a recession." - AFP/ch
<------- What do you think? Do you think there will be a rate cut? Submit your vote here. Thanks!
The Federal Open Market Committee, set to announce a decision at 1815 GMT Tuesday, is widely expected to cut interest rates in a bid to ease stress in the housing and credit markets, and head off a potential recession.
Most analysts say they expect the FOMC, which has held its federal funds rate at 5.25 percent since June 2006, to cut the benchmark rate by 25 or 50 basis points, which could lead to lower borrowing costs for many consumers and businesses.
A rate cut "would reflect an effort to contain the downside risks to growth associated with the swift tightening in financial conditions this summer in an already subpar economy," said Citigroup economist Robert
DiClemente, who predicts a half-point cut. DiClemente says the current rate of 5.25 percent is "higher than neutral," or holding back economic growth, and that a failure to cut rates "could risk an undesirable breach in investor confidence and broader damage to the expansion."
"The sooner we get to 4.5 percent or thereabouts, the better the chances of stabilising the economic outlook and the financial system that supports it," DiClemente said.
Some analysts say that if the Fed fails to take bold action such as a half-point cut, it could trigger more turmoil in financial markets, causing more failures of home lenders and mortgage defaults and prompting a freezing up of broader credit markets.
"We strongly believe that if the Fed only cuts rates by 25 basis points even with a strongly worded FOMC statement to commit to more easing if need be, there could be a significant disappointment trade in the financial markets, especially in stocks," said Deutsche Bank economists Joseph LaVorgna and Carl Riccadonna in a note to clients.
"If policymakers move too slowly now, they run the risk that more considerable damage will be inflicted on the financial markets and the real economy, and resultantly they will have to cut rates more aggressively in the long run."
Others claim that economic conditions do not warrant a rate cut, and that such a move would simply be providing more of the easy money that fuelled the boom-and-bust cycle.
"The US economy is not booming...However, the economy is not collapsing either," argued Eugenio Aleman, senior economist at Wells Fargo, who says it would be wrong for the Fed to buckle to market pressure.
"A fed funds cut will not bring back the US housing market. A fed funds cut will not bring back the commercial paper market," he said.
Aleman said the Fed must consider what happens if it cuts rates and the housing market remains depressed:
"Then the markets will ask for another rate cut, and another, and another, and another - and then what?" he said.
"The fact of the matter is that the sub-prime mess was a bad investment decision from the very beginning and was brought about by having very low interest rates for a very long period of time. And the only way to go forward is to flush it out, take the loss and move forward, not bring it back."
Brian Wesbury at First Trust Portfolios agreed, saying: "We still hold out hope the Fed will do the right thing, which is not cut rates at all. Cutting rates, when they are already too low, will 'lock in' inflation, force more rate hikes later, and puts the Fed's credibility as an inflation fighter at risk."
The US economy expanded at a robust 4.0 percent pace in the second quarter, but many experts view that as a statistical fluke that belies soft conditions.
The loss of 4,000 jobs in August, say some, point to deep problems as the housing slump and credit problems drag on growth.
Of key importance is the message sent to financial markets.
Chairman Ben Bernanke wants to ease economic stress while avoiding the impression that he is bailing out speculators and hedge funds.
"The decision to cut interest rates by 25 or 50 basis points will not be nearly as important as the Fed's language," said Nick Raich, analyst at financial group National City.
"We believe market bulls will need a Fed that will show it is willing to do whatever it takes to prevent the economy from slipping into a recession." - AFP/ch
<------- What do you think? Do you think there will be a rate cut? Submit your vote here. Thanks!
Greenspan: U.S. Not Headed for Recession
WASHINGTON -- Former Federal Reserve Chairman Alan Greenspan said on Monday the United States appears set to weather the bursting of a housing bubble without falling into recession.
"The evidence so far, is not yet. The economy at this stage, despite this fiscal problem, despite the financial problem, is still holding up," he told NBC's "Today" program.
Greenspan is granting numerous interviews to publicize the release of his memoir.
His comments come a day before the U.S. central bank is widely expected to lower benchmark federal funds interest rates, now at 5.25 percent, by at least a quarter-percentage point to help the economy weather a housing downturn and a credit crunch.
Greenspan said he expects there to be more mortgage delinquencies and home foreclosures in store in U.S. and global housing markets.
"I think we're going to have to go through this adjustment, as indeed all the other countries are in the process of going through it. There are going to be a lot of people who will have very tragic stories," he said.
Greenspan stepped down as head of the Fed in January 2006 after more than 18 years at the helm of the U.S. central bank. His book is called, "The Age of Turbulence: Adventures in a New World."
The memoir has already drawn attention for the comment the Iraq war is "largely about oil." He said on Monday his comments should not be seen as questioning President George W. Bush's emphasis on Saddam Hussein's arsenal as the justification for invading.
"I'm not saying that they believed it was about oil. I'm saying, it is about oil and that I believe it was necessary to get Saddam out," he said.
The former Fed chairman has also come under fire for writing he was surprised that his support of tax cuts early in the Bush administration would be embraced, but his simultaneous recommendation of fiscal restraint was ignored.
"I thought that the structure of the tax cut was fine, but that it had to be paid for," he said.
Greenspan, 81, also denied that he held back criticism of the administration's fiscal policies while he was Fed chairman.
"People just weren't listening to what I was saying," he said. "I went through testimony after testimony with glassy-eyed congressmen and senators out there."
In an interview in the Dutch newspaper NRC Handelsblad on Monday, Greenspan warned inflation will rise to about 5 percent in Europe and the United States.
"The normal inflation level is closer to 5 percent than the current 2 percent," Greenspan said, adding that the 5 percent level fitted an economy with a "paper" standard where the currency is not linked to gold.
<------------- He speaks again
"The evidence so far, is not yet. The economy at this stage, despite this fiscal problem, despite the financial problem, is still holding up," he told NBC's "Today" program.
Greenspan is granting numerous interviews to publicize the release of his memoir.
His comments come a day before the U.S. central bank is widely expected to lower benchmark federal funds interest rates, now at 5.25 percent, by at least a quarter-percentage point to help the economy weather a housing downturn and a credit crunch.
Greenspan said he expects there to be more mortgage delinquencies and home foreclosures in store in U.S. and global housing markets.
"I think we're going to have to go through this adjustment, as indeed all the other countries are in the process of going through it. There are going to be a lot of people who will have very tragic stories," he said.
Greenspan stepped down as head of the Fed in January 2006 after more than 18 years at the helm of the U.S. central bank. His book is called, "The Age of Turbulence: Adventures in a New World."
The memoir has already drawn attention for the comment the Iraq war is "largely about oil." He said on Monday his comments should not be seen as questioning President George W. Bush's emphasis on Saddam Hussein's arsenal as the justification for invading.
"I'm not saying that they believed it was about oil. I'm saying, it is about oil and that I believe it was necessary to get Saddam out," he said.
The former Fed chairman has also come under fire for writing he was surprised that his support of tax cuts early in the Bush administration would be embraced, but his simultaneous recommendation of fiscal restraint was ignored.
"I thought that the structure of the tax cut was fine, but that it had to be paid for," he said.
Greenspan, 81, also denied that he held back criticism of the administration's fiscal policies while he was Fed chairman.
"People just weren't listening to what I was saying," he said. "I went through testimony after testimony with glassy-eyed congressmen and senators out there."
In an interview in the Dutch newspaper NRC Handelsblad on Monday, Greenspan warned inflation will rise to about 5 percent in Europe and the United States.
"The normal inflation level is closer to 5 percent than the current 2 percent," Greenspan said, adding that the 5 percent level fitted an economy with a "paper" standard where the currency is not linked to gold.
<------------- He speaks again
Monday, September 17, 2007
Malaysian palm oil earnings to hit record in 2007
The value of Malaysia's palm oil exports is expected to reach a record high this year thanks to strong worldwide demand fuelled by the boom in biofuels, a report said Sunday.
Plantation Industries and Commodities Minister Peter Chin told the Sunday Star that export values were up despite a fall in volume, to 8.9 million tonnes for the first half of 2007 compared to 9.3 million tonnes in the first half of 2006.
"Because of the current sharp hike in demand for palm oil, the price per tonne has also shot up. Due to this, our revenue from exporting this oil has also shot up tremendously this year," he told the newspaper.
Chin said that revenue from exports of palm oil and related products hit 17.9 billion ringgit (5.15 billion dollars) in the first half of 2007, up 23.6 percent from the 14.1 billion ringgit earned in the same period a year ago.
"If this trend continues, this year will be a record year in terms of palm oil earnings," he said.
Chin said that earnings from other commodities including cocoa and rubber were also doing well.
Malaysia, the world's top producer of palm oil, has warned that output in 2007 will likely fall to 14 million tonnes, the lowest in two years, due to heavy flooding.
Palm oil production in 2006 was 15.8 million tonnes, up from 14.96 million tonnes in 2005.
Malaysia and Indonesia account for 85 percent of world production, and Indonesia is on track to claim the mantle of top producer as it expands the area of land it has under plantation.
Palm oil prices have been surging as high prices for crude oil cause demand for alternative fuels to soar.
<---------- Wilmar, Golden Agri are into palm oil businesses, should be a good investment to buy their shares.
Plantation Industries and Commodities Minister Peter Chin told the Sunday Star that export values were up despite a fall in volume, to 8.9 million tonnes for the first half of 2007 compared to 9.3 million tonnes in the first half of 2006.
"Because of the current sharp hike in demand for palm oil, the price per tonne has also shot up. Due to this, our revenue from exporting this oil has also shot up tremendously this year," he told the newspaper.
Chin said that revenue from exports of palm oil and related products hit 17.9 billion ringgit (5.15 billion dollars) in the first half of 2007, up 23.6 percent from the 14.1 billion ringgit earned in the same period a year ago.
"If this trend continues, this year will be a record year in terms of palm oil earnings," he said.
Chin said that earnings from other commodities including cocoa and rubber were also doing well.
Malaysia, the world's top producer of palm oil, has warned that output in 2007 will likely fall to 14 million tonnes, the lowest in two years, due to heavy flooding.
Palm oil production in 2006 was 15.8 million tonnes, up from 14.96 million tonnes in 2005.
Malaysia and Indonesia account for 85 percent of world production, and Indonesia is on track to claim the mantle of top producer as it expands the area of land it has under plantation.
Palm oil prices have been surging as high prices for crude oil cause demand for alternative fuels to soar.
<---------- Wilmar, Golden Agri are into palm oil businesses, should be a good investment to buy their shares.
Sunday, September 16, 2007
Malaysian official hospitalised over Iraq 'anthrax' scare
Malaysian official hospitalised over Iraq 'anthrax' scare
Posted: 15 September 2007 1456 hrs
KUALA LUMPUR: A box of sugar-covered Ramadan treats from the Iraqi embassy triggered an anthrax alert that put a Malaysian foreign ministry official in hospital, a report said Saturday.
Fire engines and hazardous materials experts descended on the home of Zakaria Sulong, the newly appointed Malaysian ambassador to Germany, after he opened a parcel containing the "suspicious" powder, the New Straits Times said.
The parcel contained the message "with compliments from the Embassy of Iraq" and had been delivered to his office before he took it home with him at the start of the Muslim fasting month.
After opening the parcel Zakaria became alarmed, and placed it in a barrel outside his house while waiting for the authorities who then cordoned off the area.
Zakaria spent Thursday night in hospital under observation before the misunderstanding was cleared up with the Iraqi embassy, which had sent sugar-covered pickles to several foreign ministry officials.
"All the parcels contained the same thing -- pickles. The surface was covered by refined sugar meant to preserve the pickles so that they will last longer. The pickles, which are very small in size, were underneath the sugar," a police source told the daily. - AFP/ac
<-------- Something light and funny on a Sunday morning
Posted: 15 September 2007 1456 hrs
KUALA LUMPUR: A box of sugar-covered Ramadan treats from the Iraqi embassy triggered an anthrax alert that put a Malaysian foreign ministry official in hospital, a report said Saturday.
Fire engines and hazardous materials experts descended on the home of Zakaria Sulong, the newly appointed Malaysian ambassador to Germany, after he opened a parcel containing the "suspicious" powder, the New Straits Times said.
The parcel contained the message "with compliments from the Embassy of Iraq" and had been delivered to his office before he took it home with him at the start of the Muslim fasting month.
After opening the parcel Zakaria became alarmed, and placed it in a barrel outside his house while waiting for the authorities who then cordoned off the area.
Zakaria spent Thursday night in hospital under observation before the misunderstanding was cleared up with the Iraqi embassy, which had sent sugar-covered pickles to several foreign ministry officials.
"All the parcels contained the same thing -- pickles. The surface was covered by refined sugar meant to preserve the pickles so that they will last longer. The pickles, which are very small in size, were underneath the sugar," a police source told the daily. - AFP/ac
<-------- Something light and funny on a Sunday morning
Saturday, September 15, 2007
Greenspan warns of higher long-run inflation
Greenspan warns of higher long-run inflation
NEW YORK, Sept 14 (Reuters) - Former Federal Reserve Chairman Alan Greenspan warns in his memoir that if the Fed is to keep the inflation rate between 1 and 2 percent in coming years it could be required to force interest rates much higher, according to a report in the Wall Street Journal.
However, Greenspan said he fears the Fed will face "populist resistance from Congress, if not from the White House" to its policy of maintaining price stability.
He said if the Fed succumbs to that pressure, the inflation rate could rise to an average of 4 to 5 percent by 2030, and 10-year Treasury yields will rise to at least 8 percent with the potential to go "significantly higher for brief periods," the newspaper report said.
<------- Inflation, recession, doom days... he is still earning good money from his memoir. Wish he started writing his memoir earlier.. so he could have warned us on the subprime effect then.. heh heh
NEW YORK, Sept 14 (Reuters) - Former Federal Reserve Chairman Alan Greenspan warns in his memoir that if the Fed is to keep the inflation rate between 1 and 2 percent in coming years it could be required to force interest rates much higher, according to a report in the Wall Street Journal.
However, Greenspan said he fears the Fed will face "populist resistance from Congress, if not from the White House" to its policy of maintaining price stability.
He said if the Fed succumbs to that pressure, the inflation rate could rise to an average of 4 to 5 percent by 2030, and 10-year Treasury yields will rise to at least 8 percent with the potential to go "significantly higher for brief periods," the newspaper report said.
<------- Inflation, recession, doom days... he is still earning good money from his memoir. Wish he started writing his memoir earlier.. so he could have warned us on the subprime effect then.. heh heh
Friday, September 14, 2007
US Economic Calender (17/09/2007 to 21/09/2007)
Definition of FOMCThe Federal Open Market Committee consists of the seven Governors of the Federal Reserve Board and five Federal Reserve Bank presidents. The FOMC meets eight times a year in order to determine the near-term direction of monetary policy. Changes in monetary policy are now announced immediately after FOMC meetings.
Why Do Investors Care?
The Fed determines interest rate policy at FOMC meetings. These meetings occur roughly every six weeks and are the single most influential event for the markets. For weeks in advance, market participants speculate about the possibility of an interest rate change -- or a change in the wording of the post-FOMC announcement that suggests a shift in policy -- at these meetings. If the outcome is different from expectations, the impact on the markets can be dramatic and far-reaching.
The interest rate set by the Fed, the federal funds rate, serves as a benchmark for all other rates. A change in the fed funds rate, the lending rate banks charge each other for the use of overnight funds, translates directly through to all other interest rates from Treasury bonds to mortgage loans. It also changes the dynamics of competition for investor dollars: when bonds yield 10 percent, they will attract more money away from stocks than when they only yield 5 percent.
The level of interest rates affects the economy. Higher interest rates tend to slow economic activity; lower interest rates stimulate economic activity. Either way, interest rates influence the sales environment. In the consumer sector, few homes or cars will be purchased when interest rates rise. Furthermore, interest rate costs are a significant factor for many businesses, particularly for companies with high debt loads or who have to finance high inventory levels. This interest cost has a direct impact on corporate profits. The bottom line is that higher interest rates are bearish for the financial markets, while lower interest rates are bullish.
<---------- Big day for investors on 18 September 2007 (USA)
Hongwei’s Net Profit Up 60% to RMB 29.3 million in 1H2007
Hongwei’s Net Profit Up 60% to RMB 29.3 million in 1H2007
• Revenue surged 84% to RMB 152.8 million
• Earnings per share rose 51%
• Expansion plans on track
Singapore, 13 August 2007 – SGX Mainboard-listed Hongwei Technologies Limited, a PRC-based polyester fibre manufacturer and supplier serving more than 600 customers, today reported a sterling set of results, with net profit surging 60% to hit RMB 29.3 million for the six months ended 30 June 2007.
The Board is very pleased with this set of results, and is optimistic about Group performance in FY2007. With our new factory targeted for completion in 3rd quarter this year, we will be able to gradually double our production capacity of Synthetic Cotton from the current capacity of 8,000 tonnes to 16,000 tonnes in 2008. With the introduction of the new anti-flammable Synthetic Cotton series, which is expected to contribute not less than 10% to Group gross profit for FY2007, the gross profit of the Group is expected to further improve in the second half of the year.
<------------ Ok.. I just vested.. main reason... winter's coming to China... Synthetic cotton should be in higher demand.. right?
• Revenue surged 84% to RMB 152.8 million
• Earnings per share rose 51%
• Expansion plans on track
Singapore, 13 August 2007 – SGX Mainboard-listed Hongwei Technologies Limited, a PRC-based polyester fibre manufacturer and supplier serving more than 600 customers, today reported a sterling set of results, with net profit surging 60% to hit RMB 29.3 million for the six months ended 30 June 2007.
The Board is very pleased with this set of results, and is optimistic about Group performance in FY2007. With our new factory targeted for completion in 3rd quarter this year, we will be able to gradually double our production capacity of Synthetic Cotton from the current capacity of 8,000 tonnes to 16,000 tonnes in 2008. With the introduction of the new anti-flammable Synthetic Cotton series, which is expected to contribute not less than 10% to Group gross profit for FY2007, the gross profit of the Group is expected to further improve in the second half of the year.
<------------ Ok.. I just vested.. main reason... winter's coming to China... Synthetic cotton should be in higher demand.. right?
Circle line MRT facing delays as costs increase
Circle line MRT facing delays as costs increase
By Christopher Tan
THE Circle Line MRT project could take up to 2012 to complete, and the escalated cost of sand and granite will inflate the $6.8 billion budget.
"We have decided to compensate the contractors for 75 per cent of the cost increase in sand and aggregate," Land Transport Authority deputy chief executive Lim Bok Ngam said.
He said he does not expect the higher cost in the two raw materials to push the Circle Line budget beyond a single-digit percentage, as "concrete works make up only 20-30 per cent of total cost".
But Mr Lim said additional costs from more stringent design and engineering requirements after the Nicoll Highway accident in 2004 "have not been worked out".
For instance, the Farrer Road Station being built now has retaining walls that are 1.2m thick - 50 per cent thicker than the failed walls at the Nicoll Highway station.
Even so, it had so many steel struts holding the walls in place that it was impossible to see right to the bottom of the excavation.
The LTA said this is because the station is very close to HDB blocks on one side and a major road (Farrer Road) on the other.
The LTA would not be pinned down on the exact date of opening nor the eventual cost of the line, but admitted that tougher engineering and design requirements after the Nicoll Highway tragedy will add to cost.
But at a progress report on Friday, it indicated that a stretch measuring about 8km - with seven stations between MacPherson and Marymount - was in advance stages of completion.
And the Circle Line's train depot is along this stretch (at Kim Chuan), it is feasible to open it, as early as first-half 2010.
Mr Lim said this stretch should be ready by 2010 Stage 3 - a 5.7km stretch linking Bartley to Marymount.
See video below:
http://http://www.straitstimes.com/Video+News/Singapore/STIVodcast_2634.html?playid=2634&type=Singapore
<------------- Another bad news for the construction sector
By Christopher Tan
THE Circle Line MRT project could take up to 2012 to complete, and the escalated cost of sand and granite will inflate the $6.8 billion budget.
"We have decided to compensate the contractors for 75 per cent of the cost increase in sand and aggregate," Land Transport Authority deputy chief executive Lim Bok Ngam said.
He said he does not expect the higher cost in the two raw materials to push the Circle Line budget beyond a single-digit percentage, as "concrete works make up only 20-30 per cent of total cost".
But Mr Lim said additional costs from more stringent design and engineering requirements after the Nicoll Highway accident in 2004 "have not been worked out".
For instance, the Farrer Road Station being built now has retaining walls that are 1.2m thick - 50 per cent thicker than the failed walls at the Nicoll Highway station.
Even so, it had so many steel struts holding the walls in place that it was impossible to see right to the bottom of the excavation.
The LTA said this is because the station is very close to HDB blocks on one side and a major road (Farrer Road) on the other.
The LTA would not be pinned down on the exact date of opening nor the eventual cost of the line, but admitted that tougher engineering and design requirements after the Nicoll Highway tragedy will add to cost.
But at a progress report on Friday, it indicated that a stretch measuring about 8km - with seven stations between MacPherson and Marymount - was in advance stages of completion.
And the Circle Line's train depot is along this stretch (at Kim Chuan), it is feasible to open it, as early as first-half 2010.
Mr Lim said this stretch should be ready by 2010 Stage 3 - a 5.7km stretch linking Bartley to Marymount.
See video below:
http://http://www.straitstimes.com/Video+News/Singapore/STIVodcast_2634.html?playid=2634&type=Singapore
<------------- Another bad news for the construction sector
Greenspan says he didn't see subprime storm brewing
Greenspan says he didn't see subprime storm brewing
WASHINGTON - FORMER Federal Reserve Chairman Alan Greenspan said he was late to see the storm gathering around United States mortgage lending practices and commended his successor Ben Bernanke's handling of the crisis, saying he would likely be responding in a similar fashion.
'I think he is doing an excellent job,' Mr Greenspan said of Mr Bernanke in a television interview scheduled to air on Sunday.
Mr Greenspan was asked if he would lower interest rates as dramatically and quickly now as he did just ahead of, during and in the wake of the 2001 recession, according to excerpts of the CBS 60 Minutes interview released on Thursday.
'I'm not sure that's true,' he said. 'We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary pressures.'
'You can't do that anymore. ... I'm not sure I would have done anything different (if chairman today),' he added.
The comments from Mr Greenspan, who was tested early in his tenure by the October 1987 stock market crash, come as Mr Bernanke's skills are challenged by rising defaults in the US subprime mortgage market, which caters to risky borrowers, and a related global credit squeeze.
Mr Bernanke's Fed has come under fire from some quarters for not acknowledging quickly enough how deeply the current crisis could harm the economy or responding aggressively enough to keep the US expansion on track. Some analysts have speculated that Mr Greenspan would have acted more swiftly.
Mr Bernanke and his colleagues meet on Tuesday. They are widely expected to lower benchmark overnight interest rates, which the Fed has held at 5.25 per cent since June 2006, by at least a quarter-percentage point.
Mr Bernanke had justified holding rates at that level despite some clamouring in markets for lower borrowing costs, on the grounds that inflation has remained troublingly high and needed to recede first.
Only in recent weeks, as credit stress mounted in financial markets and it became clear a housing recovery was a long ways off, have Fed officials suggested that worries about growth have supplanted long-standing concerns on inflation. -- REUTERS
<----------- Shall I ask him to pay for my losses?
WASHINGTON - FORMER Federal Reserve Chairman Alan Greenspan said he was late to see the storm gathering around United States mortgage lending practices and commended his successor Ben Bernanke's handling of the crisis, saying he would likely be responding in a similar fashion.
'I think he is doing an excellent job,' Mr Greenspan said of Mr Bernanke in a television interview scheduled to air on Sunday.
Mr Greenspan was asked if he would lower interest rates as dramatically and quickly now as he did just ahead of, during and in the wake of the 2001 recession, according to excerpts of the CBS 60 Minutes interview released on Thursday.
'I'm not sure that's true,' he said. 'We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary pressures.'
'You can't do that anymore. ... I'm not sure I would have done anything different (if chairman today),' he added.
The comments from Mr Greenspan, who was tested early in his tenure by the October 1987 stock market crash, come as Mr Bernanke's skills are challenged by rising defaults in the US subprime mortgage market, which caters to risky borrowers, and a related global credit squeeze.
Mr Bernanke's Fed has come under fire from some quarters for not acknowledging quickly enough how deeply the current crisis could harm the economy or responding aggressively enough to keep the US expansion on track. Some analysts have speculated that Mr Greenspan would have acted more swiftly.
Mr Bernanke and his colleagues meet on Tuesday. They are widely expected to lower benchmark overnight interest rates, which the Fed has held at 5.25 per cent since June 2006, by at least a quarter-percentage point.
Mr Bernanke had justified holding rates at that level despite some clamouring in markets for lower borrowing costs, on the grounds that inflation has remained troublingly high and needed to recede first.
Only in recent weeks, as credit stress mounted in financial markets and it became clear a housing recovery was a long ways off, have Fed officials suggested that worries about growth have supplanted long-standing concerns on inflation. -- REUTERS
<----------- Shall I ask him to pay for my losses?
S'pore housing market heads for correction
S'pore housing market heads for correction
SINGAPORE'S housing market - which has seen prices skyrocket amid frenzied buying - is heading for a correction, as analysts predict a building boom could flood the city-state with new homes by 2009.
Private home prices, which have surged to decade highs in the past 40 months, are holding for now, but analysts say the market is increasingly vulnerable to a sudden downturn in sentiment.
Global property investor LaSalle Investment Management, which has US$6 billion (S$9 billion) of real estate assets in Asia, says Singapore residential property is 'fully priced' and will consolidate before appreciating any further.
'By global standards, Singapore luxury apartments are very expensive. At some point, affordability and common sense have to come in,' said Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer.
Property developers and agents say fewer deals were struck last month, slowing a buying frenzy that saw people queue overnight for some projects and that pushed Singapore real estate price gains past those of regional rivals such as Hong Kong.
'A correction is going to take place. The question is: how severe?' said Winston Liew, analyst at OCBC Investment Research.
Singapore luxury homes fetched an average $16,743 per square metre (psm) in June, up 52 per cent from a year ago, against Hong Kong's 13 per cent rise in capital values to $18,286 psm.
Those who bought property as a sure-fire investment are fretting.
'I'm nervous because I don't expect prices to rise anytime soon. The signals aren't good,' said Charles Wong, who paid S$1.1 million (US$728,000) for a one-bedroom downtown apartment in April.
Excess supplyHousing supply has been tight as developers tore down old developments to replace them with newer properties, pushing thousands of displaced homeowners back to the market.
According to Jones Lang LaSalle, some 3,876 private apartments will be demolished this year - more than the 3,295 new homes expected to come on to the market.
These 'en bloc' deals - where entire housing estates are knocked down - have slowed since the government tightened rules on them. Collective home sales totalled S$11 billion in the first seven months this year but dropped to S$783 million in August.
Property market sentiment has been supported by Singapore's long-term goal to boost the island's population to 6.5 million from 4.5 million, but analysts forecast a glut of new homes from end-2008.
'In terms of actual occupants, there will be excess supply by 2009,' said Jones Lang LaSalle Head of Research Chua Yang Liang.
He estimates there will be 11,975 new private apartments available in 2009 - nearly four times the number expected this year and double the anticipated amount in 2008.
Car garages in the skyAt least four out of five Singaporeans live in state-subsidised high-rise flats, leaving the private home market dependent on upper-income residents and foreigners.
Investment firm Emirates Tarian Capital is betting these foreign investors, who comprise nearly half the buyers in most projects, will focus increasingly on high-end homes.
'Demand is going to be selective and for branded, quality projects where the quantity is limited,' said Kunalan Sivapuniam, managing partner of the firm, which is investing in two high-rises including one 30-storey block equipped with individual lifts to bring owners' cars up to each apartment.
Developers, who usually sell their projects in stages, have held off launching their units for sale in recent weeks.
'If we feel the market is slowing, we're not going to push the project only to have buyers back out later,' Cheng Wai Keung, chairman of luxury home builder Wing Tai Holdings said.
Crunch timeAnalysts say a global credit crunch could constrain Singapore property firms' ability to offer liberal repayment schemes that allow buyers to make a 10 to 20 per cent deposit and delay the bulk of payment until the property nears completion.
These 'deferred payment' plans, introduced after a property slump in 2001, have been key to driving market growth, with up to 90 per cent of buyers in some projects opting for them.
In July, the central bank warned that delayed payments plans posed 'additional risks' to developers and their banks because of the possibility of default. Those risks have only grown with the US mortgage crisis.
'If the cost of capital rises, smaller developers will find it harder to offer deferred payment schemes,' said an analyst.
Singapore's biggest developer CapitaLand said it would continue to offer such schemes 'where appropriate'.
CapitaLand, City Developments and Keppel Land have posted strong second-quarter profits, driven by strong contributions from their Singapore businesses.
They should, however, be largely protected against a fall in housing prices as most have diversified into office property and housing developments outside Singapore. CapitaLand, for example, earns up to 80 per cent of its profit overseas.
'Major developers have lower gearing, sufficient cash or unutilised credit lines to prevent a squeeze,' wrote Deutsche Bank strategist Gregory Lui in a recent report. -- REUTERS
<---------- Property downturn in 2009? Better save some money now to buy cheaper condo later
SINGAPORE'S housing market - which has seen prices skyrocket amid frenzied buying - is heading for a correction, as analysts predict a building boom could flood the city-state with new homes by 2009.
Private home prices, which have surged to decade highs in the past 40 months, are holding for now, but analysts say the market is increasingly vulnerable to a sudden downturn in sentiment.
Global property investor LaSalle Investment Management, which has US$6 billion (S$9 billion) of real estate assets in Asia, says Singapore residential property is 'fully priced' and will consolidate before appreciating any further.
'By global standards, Singapore luxury apartments are very expensive. At some point, affordability and common sense have to come in,' said Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer.
Property developers and agents say fewer deals were struck last month, slowing a buying frenzy that saw people queue overnight for some projects and that pushed Singapore real estate price gains past those of regional rivals such as Hong Kong.
'A correction is going to take place. The question is: how severe?' said Winston Liew, analyst at OCBC Investment Research.
Singapore luxury homes fetched an average $16,743 per square metre (psm) in June, up 52 per cent from a year ago, against Hong Kong's 13 per cent rise in capital values to $18,286 psm.
Those who bought property as a sure-fire investment are fretting.
'I'm nervous because I don't expect prices to rise anytime soon. The signals aren't good,' said Charles Wong, who paid S$1.1 million (US$728,000) for a one-bedroom downtown apartment in April.
Excess supplyHousing supply has been tight as developers tore down old developments to replace them with newer properties, pushing thousands of displaced homeowners back to the market.
According to Jones Lang LaSalle, some 3,876 private apartments will be demolished this year - more than the 3,295 new homes expected to come on to the market.
These 'en bloc' deals - where entire housing estates are knocked down - have slowed since the government tightened rules on them. Collective home sales totalled S$11 billion in the first seven months this year but dropped to S$783 million in August.
Property market sentiment has been supported by Singapore's long-term goal to boost the island's population to 6.5 million from 4.5 million, but analysts forecast a glut of new homes from end-2008.
'In terms of actual occupants, there will be excess supply by 2009,' said Jones Lang LaSalle Head of Research Chua Yang Liang.
He estimates there will be 11,975 new private apartments available in 2009 - nearly four times the number expected this year and double the anticipated amount in 2008.
Car garages in the skyAt least four out of five Singaporeans live in state-subsidised high-rise flats, leaving the private home market dependent on upper-income residents and foreigners.
Investment firm Emirates Tarian Capital is betting these foreign investors, who comprise nearly half the buyers in most projects, will focus increasingly on high-end homes.
'Demand is going to be selective and for branded, quality projects where the quantity is limited,' said Kunalan Sivapuniam, managing partner of the firm, which is investing in two high-rises including one 30-storey block equipped with individual lifts to bring owners' cars up to each apartment.
Developers, who usually sell their projects in stages, have held off launching their units for sale in recent weeks.
'If we feel the market is slowing, we're not going to push the project only to have buyers back out later,' Cheng Wai Keung, chairman of luxury home builder Wing Tai Holdings said.
Crunch timeAnalysts say a global credit crunch could constrain Singapore property firms' ability to offer liberal repayment schemes that allow buyers to make a 10 to 20 per cent deposit and delay the bulk of payment until the property nears completion.
These 'deferred payment' plans, introduced after a property slump in 2001, have been key to driving market growth, with up to 90 per cent of buyers in some projects opting for them.
In July, the central bank warned that delayed payments plans posed 'additional risks' to developers and their banks because of the possibility of default. Those risks have only grown with the US mortgage crisis.
'If the cost of capital rises, smaller developers will find it harder to offer deferred payment schemes,' said an analyst.
Singapore's biggest developer CapitaLand said it would continue to offer such schemes 'where appropriate'.
CapitaLand, City Developments and Keppel Land have posted strong second-quarter profits, driven by strong contributions from their Singapore businesses.
They should, however, be largely protected against a fall in housing prices as most have diversified into office property and housing developments outside Singapore. CapitaLand, for example, earns up to 80 per cent of its profit overseas.
'Major developers have lower gearing, sufficient cash or unutilised credit lines to prevent a squeeze,' wrote Deutsche Bank strategist Gregory Lui in a recent report. -- REUTERS
<---------- Property downturn in 2009? Better save some money now to buy cheaper condo later
Thursday, September 13, 2007
Jobless Claims Rose Less Than Expected Last Week
The number of U.S. workers signing up for jobless benefits edged up a smaller-than-expected 4,000 in a holiday-shortened week, a government report showed on Thursday.
Initial claims for state unemployment insurance rose to a seasonally adjusted 319,000 for the week ended Sept. 8, from a downwardly revised 315,000 the prior week, the Labor Department said.
The week included the Labor Day holiday, and while the claims data is seasonally adjusted, it is difficult to adjust around holidays.
Analysts polled by Reuters were expecting claims to rise to 325,000 from the previously reported 318,000.
U.S. Treasury bond prices inched up shortly after release of the report. U.S. stock futures added to gains. Analysts said these latest claims numbers pointed to more resilience in the labor market than last week's August unemployment report, which showed that the economy shed jobs for the first time in four years.
"This is giving hope that the economy isn't as bad. It translates that the consumer is still there, which is very important to the whole process," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.
The four-week moving average for initial claims, which irons out week-to-week volatility, dipped to 324,000 from 325,000.
Meanwhile, the number of unemployed still on the benefit rolls after drawing an initial week of aid fell by 6,000 to 2.585 million, for the week ended Sept. 1, the latest period these figures were available. That was in line with expectations.
The latest jobless claims figures came after the government reported last Friday that non-farm employers trimmed payrolls by 4,000 jobs in August, raising expectations that the Federal Reserve would reduce interest rates to help boost the economy amid turmoil in the housing and mortgage markets.
Markets are awaiting retail sales and industrial production reports on Friday for more conclusive evidence about whether turmoil in these markets has exacted a significant toll on the broader economy.
The Federal Reserve's interest-rate setting Federal Open Market Committee is scheduled to meet Sept. 18.
<-----------No rate cut I guess..
Initial claims for state unemployment insurance rose to a seasonally adjusted 319,000 for the week ended Sept. 8, from a downwardly revised 315,000 the prior week, the Labor Department said.
The week included the Labor Day holiday, and while the claims data is seasonally adjusted, it is difficult to adjust around holidays.
Analysts polled by Reuters were expecting claims to rise to 325,000 from the previously reported 318,000.
U.S. Treasury bond prices inched up shortly after release of the report. U.S. stock futures added to gains. Analysts said these latest claims numbers pointed to more resilience in the labor market than last week's August unemployment report, which showed that the economy shed jobs for the first time in four years.
"This is giving hope that the economy isn't as bad. It translates that the consumer is still there, which is very important to the whole process," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.
The four-week moving average for initial claims, which irons out week-to-week volatility, dipped to 324,000 from 325,000.
Meanwhile, the number of unemployed still on the benefit rolls after drawing an initial week of aid fell by 6,000 to 2.585 million, for the week ended Sept. 1, the latest period these figures were available. That was in line with expectations.
The latest jobless claims figures came after the government reported last Friday that non-farm employers trimmed payrolls by 4,000 jobs in August, raising expectations that the Federal Reserve would reduce interest rates to help boost the economy amid turmoil in the housing and mortgage markets.
Markets are awaiting retail sales and industrial production reports on Friday for more conclusive evidence about whether turmoil in these markets has exacted a significant toll on the broader economy.
The Federal Reserve's interest-rate setting Federal Open Market Committee is scheduled to meet Sept. 18.
<-----------No rate cut I guess..
If I have S$100k today..... I will invest in...
Counter Current Price No of Shares to buy Amount
- MDR $0.07 100,000 $7,000
- YongNam $0.405 100,000 $40,500
- HLH $0.055 100,000 $5500
- ChinaSsine $0.370 100,000 $37,000
- Sing Lun $0.250 20,000 $5000
- BRC Asia $0.200 25,000 $5000
Let's see my results one month later.
<-------- Will I be richer or become a pauper?
Top Ten Investors of YONGNAM - as on 13th Sept 2007
Top Ten Investors of YONGNAM - as on 13th Sept 2007
Investor Name %
JF Asset Management (Singapore) Ltd. 9.33
Yongnam Pte Ltd 5.35
United Engineers Limited 4.91
United Overseas Bank Ltd. (UOB) 4.17
Prudential Asset Management (Singapore) Ltd. 4.04
Seow (Soon Yong) 2.80
Seow (Soon Hee) 1.88
Morgan Stanley Investment Management (Singapore) 1.59
Takenaka Singapore Pte. Ltd. 1.36
Driehaus Capital Management, LLC 1.34
JF Asset Management (Singapore) Ltd. is a division of JPMorgan Asset Management (JPMAM), the name by which all asset management businesses of J.P. Morgan Chase & Co. operate globally.
9.33% holding is equivalent to 112,039,000 shares
Investor Name %
JF Asset Management (Singapore) Ltd. 9.33
Yongnam Pte Ltd 5.35
United Engineers Limited 4.91
United Overseas Bank Ltd. (UOB) 4.17
Prudential Asset Management (Singapore) Ltd. 4.04
Seow (Soon Yong) 2.80
Seow (Soon Hee) 1.88
Morgan Stanley Investment Management (Singapore) 1.59
Takenaka Singapore Pte. Ltd. 1.36
Driehaus Capital Management, LLC 1.34
JF Asset Management (Singapore) Ltd. is a division of JPMorgan Asset Management (JPMAM), the name by which all asset management businesses of J.P. Morgan Chase & Co. operate globally.
9.33% holding is equivalent to 112,039,000 shares
Two Possible Outcomes Of A Fed Rate Cut, According To Merril
It’s 2:15 p.m. ET on Tuesday September 18 and the U.S. Federal Reserve has just cut the fed funds rate to 5.00% as the market expected. This follows the Fed’s unexpected cut to the discount rate (borrowing costs for bank loans) a month earlier, which was intended to ease the credit crunch.
The Fed hasn’t raised rates since June 2006, and hadn’t lowered them since June 2003, when it cut rates by 25 basis points to 1.00%.
So what do you do?
If the move came too late and the U.S. economy ends up slipping into a recession – as was the case in the early 1980s, early 1990s and again in 2001 – here’s what could happen according to Merrill Lynch North American economist David Rosenberg, who uses those three occasions as a guideline.
The fed cuts rates hard – by an average of 215 basis points in these first three months.
The greenback dips 0.8% and is down 1.6% after half a year.
Gold gains 11% and is up 17% after six months, but it is the only commodity to rally.
Volatility surges, with the VIX up an average of 28%.
Meanwhile, the S&P 500 is flat, the Russell 2000 falls 4.5% and the NASDAQ declines 5.3% in the first three months.
Early on, utilities, drug companies, food products and tobacco are good sectors to be in, while technology, industrials, consumer discretionary and the banks don’t do very well.
While investors favoured bonds, stocks and cash (in that order) during these times of combined Fed easing and recession, between the third and six months after cuts begin, the optimal asset mix moves to more stocks and less bonds, since the equity market begins to discount the recovery, Mr. Rosenberg said.
Finally, a year after the first cut, and after the economic downturn has passed (recessions average 10 months) stocks, cash and bonds (in that order) proved to work best, he added in a note to clients.
So the main message is that in that critical first three months after the Fed cuts, how the dollar, bonds, volatility, commodities, stocks and sectors fare is dependant on whether the Fed moved in time.
Given Merrill’s expectations that there is a 65% chance of a recession coming in the next year, and Mr. Rosenberg’s view that the easing is likely too late, high quality bonds and equities with earnings stability in times of economic downturn, as well as a focus on dividend yield, may be the way to go.
However, if the Fed cut is just a financial event and does not become an economic one, Mr. Rosenberg says now is the time to chip away at the equity market – adding risk and liquidity as you go
The Fed hasn’t raised rates since June 2006, and hadn’t lowered them since June 2003, when it cut rates by 25 basis points to 1.00%.
So what do you do?
If the move came too late and the U.S. economy ends up slipping into a recession – as was the case in the early 1980s, early 1990s and again in 2001 – here’s what could happen according to Merrill Lynch North American economist David Rosenberg, who uses those three occasions as a guideline.
The fed cuts rates hard – by an average of 215 basis points in these first three months.
The greenback dips 0.8% and is down 1.6% after half a year.
Gold gains 11% and is up 17% after six months, but it is the only commodity to rally.
Volatility surges, with the VIX up an average of 28%.
Meanwhile, the S&P 500 is flat, the Russell 2000 falls 4.5% and the NASDAQ declines 5.3% in the first three months.
Early on, utilities, drug companies, food products and tobacco are good sectors to be in, while technology, industrials, consumer discretionary and the banks don’t do very well.
While investors favoured bonds, stocks and cash (in that order) during these times of combined Fed easing and recession, between the third and six months after cuts begin, the optimal asset mix moves to more stocks and less bonds, since the equity market begins to discount the recovery, Mr. Rosenberg said.
Finally, a year after the first cut, and after the economic downturn has passed (recessions average 10 months) stocks, cash and bonds (in that order) proved to work best, he added in a note to clients.
So the main message is that in that critical first three months after the Fed cuts, how the dollar, bonds, volatility, commodities, stocks and sectors fare is dependant on whether the Fed moved in time.
Given Merrill’s expectations that there is a 65% chance of a recession coming in the next year, and Mr. Rosenberg’s view that the easing is likely too late, high quality bonds and equities with earnings stability in times of economic downturn, as well as a focus on dividend yield, may be the way to go.
However, if the Fed cut is just a financial event and does not become an economic one, Mr. Rosenberg says now is the time to chip away at the equity market – adding risk and liquidity as you go
STOCKS NEWS ASIA-Asian ADRs fall 0.4 pct; Chalco drops
HONG KONG, Sept 13 (Reuters) - Asian stocks listed on Wall Street fell 0.4 percent as Japanese shares slipped after the surprise resignation of Prime Minister Shinzo Abe, but record high oil prices boosted energy shares.
Also under pressure, China's top alumina and aluminium producer Chalco slumped 9 percent after Alcoa Inc sold its stake in the Chinese firm.
Japanese stocks including Mitsubishi UFJ and electronics components maker Kyocera all lost ground.
Abe abruptly announced his resignation on Wednesday after a year in power dogged by scandals, an election rout and a crisis over Japan's support for U.S.-led operations in Afghanistan.
But oil and gas producer CNOOC gained 3.7 percent as oil hit a record high above $80 a barrel on tight U.S. inventories and potential supply disruptions from a tropical storm in the Gulf of Mexico.
U.S. stock indexes ended little changed on Wednesday, while MSCI's measure of Asia Pacific stocks excluding Japan advanced 0.5 percent.
Also under pressure, China's top alumina and aluminium producer Chalco slumped 9 percent after Alcoa Inc sold its stake in the Chinese firm.
Japanese stocks including Mitsubishi UFJ and electronics components maker Kyocera all lost ground.
Abe abruptly announced his resignation on Wednesday after a year in power dogged by scandals, an election rout and a crisis over Japan's support for U.S.-led operations in Afghanistan.
But oil and gas producer CNOOC gained 3.7 percent as oil hit a record high above $80 a barrel on tight U.S. inventories and potential supply disruptions from a tropical storm in the Gulf of Mexico.
U.S. stock indexes ended little changed on Wednesday, while MSCI's measure of Asia Pacific stocks excluding Japan advanced 0.5 percent.
Ezra to sell 40% of unit headed for Oslo mainboard listing
MARINE group Ezra Holdings is selling a 40 per cent stake in EOC Ltd for up to 1.068 billion Norwegian kroner ($282 million), a move that will make its production and construction unit the first Singapore company to list on the mainboard of the Oslo Stock Exchange.
Mr Lee: EOC's listing in Oslo will also enable the company to tap new sources of funding Ezra, which owns 88 per cent of EOC, said yesterday that it is selling up to about 44.5 million EOC shares through private placement to institutional and professional investors at an indicative price range of 22-24 Norwegian kroner per share.
EOC currently trades on the over-the-counter (OTC) of the Oslo exchange. This is expected to raise gross proceeds of S$258-282 million and pare Ezra's stake in EOC to 48 per cent.
The actual pricing will be determined through a book-building process by Pareto Securities ASA that will run from Sept 10 to 19. 'The sale is in line with our asset-light strategy,' Ezra's managing director Lionel Lee said. 'EOC's separate mainboard listing in Oslo will also enable the company to tap new and diversified sources of funding to accelerate its growth in line with the buoyant demand for offshore construction and production support vessels.'
Mr Lee noted that the placement of EOC shares to investors in Norway and internationally will ensure a sound investor support. EOC's European listing is also strategic for the group as it will enhance its overall position in the North Sea, South America and West Africa markets.
One of the conditions for the Oslo mainboard listing is that EOC must have a free float of at least 25 per cent of the shares admitted to listing. Ezra said members of EOC's board and management will be pre-allocated a maximum of 4.5 million shares.
'The placement will facilitate EOC's upgrade to the mainboard and will enable the group to raise its profile among investors as a high-growth company in the construction and FPSO (floating production storage and offloading) segment of the offshore oil and gas industry,' said EOC's managing director KK Lim.
EOC's mainboard status wiill allow it to tap on a wider range of funding possibilities to finance its future growth plans as it carves out a niche in the medium to deepwater projects, he added.
EOC, which provides offshore fabrication, commissioning and transportation services to the oil and gas industry, currently manages two heavy lift accommodation crane barges and recently took delivery of a pipe-lay and accommodation vessel called the Lewek Champion.
Ezra manages 25 vessels comprising anchor handling tug supply vessels (AHTS), anchor handling tugs (AHTs), crewboats, barges and a pipelaying vessel.
Mr Lee: EOC's listing in Oslo will also enable the company to tap new sources of funding Ezra, which owns 88 per cent of EOC, said yesterday that it is selling up to about 44.5 million EOC shares through private placement to institutional and professional investors at an indicative price range of 22-24 Norwegian kroner per share.
EOC currently trades on the over-the-counter (OTC) of the Oslo exchange. This is expected to raise gross proceeds of S$258-282 million and pare Ezra's stake in EOC to 48 per cent.
The actual pricing will be determined through a book-building process by Pareto Securities ASA that will run from Sept 10 to 19. 'The sale is in line with our asset-light strategy,' Ezra's managing director Lionel Lee said. 'EOC's separate mainboard listing in Oslo will also enable the company to tap new and diversified sources of funding to accelerate its growth in line with the buoyant demand for offshore construction and production support vessels.'
Mr Lee noted that the placement of EOC shares to investors in Norway and internationally will ensure a sound investor support. EOC's European listing is also strategic for the group as it will enhance its overall position in the North Sea, South America and West Africa markets.
One of the conditions for the Oslo mainboard listing is that EOC must have a free float of at least 25 per cent of the shares admitted to listing. Ezra said members of EOC's board and management will be pre-allocated a maximum of 4.5 million shares.
'The placement will facilitate EOC's upgrade to the mainboard and will enable the group to raise its profile among investors as a high-growth company in the construction and FPSO (floating production storage and offloading) segment of the offshore oil and gas industry,' said EOC's managing director KK Lim.
EOC's mainboard status wiill allow it to tap on a wider range of funding possibilities to finance its future growth plans as it carves out a niche in the medium to deepwater projects, he added.
EOC, which provides offshore fabrication, commissioning and transportation services to the oil and gas industry, currently manages two heavy lift accommodation crane barges and recently took delivery of a pipe-lay and accommodation vessel called the Lewek Champion.
Ezra manages 25 vessels comprising anchor handling tug supply vessels (AHTS), anchor handling tugs (AHTs), crewboats, barges and a pipelaying vessel.
Wednesday, September 12, 2007
CDL clinched the Beach Road site at S$1.69b
Business Times - 11 Sep 2007
CityDev consortium clinches deal while a bigger bid fails to make the cut
By KALPANA RASHIWALA (SINGAPORE)
As a new symbol of environmentally-friendly architecture was unveiled yesterday, green became the topic of discussion in more ways than one. The award of the former NCO Club/Beach Road camp grounds to a City Developments consortium was accompanied by a tinge of envy as observers pointed out that the winning land bid of nearly $1.69 billion is believed to be around $500 million lower than the top bid, which was not even short-listed under the two-envelope tender.
The Urban Redevelopment Authority chose to first evaluate the various concepts before looking at the money on the table.
CityDev and its partners Istithmar (part of the Dubai World Group) and El-Ad Group are expected by market watchers to invest a total sum of $2.5 billion or more in the project. They plan to develop two towers (45- and 42-storeys high) - that are expected to house two luxury hotels, offices and apartments - and restore four conservation buildings (for retail and hotel-related uses like function rooms).
The cutting-edge green features in the Foster & Partners-designed scheme include slanting facades for the towers to catch winds and direct air flow to ground-level spaces, a canopy covering open areas, linking conservation buildings with two high-rise towers and providing shelter from the elements and drawing air currents to cool the area beneath it. And water will be collected off the towers and the canopy to flow into a holding tank underground, instead of being wasted.
The development, to be called South Beach, is set to become a 'revolutionary New Eco-Quarter in Singapore' when it is completed by 2012, CityDev said.
Still, the price of the winning bid came under some scrutiny.
Of the seven bids on the table, only two - that of the CityDev consortium and a joint venture between Keppel Land and Cheung Kong Holdings - made it past the concept evaluation stage. That is when URA moved onto the second stage of the two-envelope process to award the tender to the higher bidder.
The Keppel Land-Cheung Kong bid was worth $1.39 billion while the CityDev consortium's bid of $1.69 billion was comfortably higher and clinched the deal for it. The winning bid for the 3.5 hectare plot with a 99-year leasehold tenure worked out to $1,069 per square foot of potential gross floor area.
The top bid, believed to be more than $2 billion, had come from one of the other five who tendered but did not make it past the concept stage. They included: a JV between Pontiac Land Group and Morgan Stanley; CapitaLand; another JV between Keppel Land and Cheung Kong; and two bids by Overseas Union Enterprise.
URA said that overall, the CityDev consortium's concept proposal offers a 'compelling and attractive scheme' that would create a 'truly distinctive development and an exemplary showcase of 'green' architecture in Singapore'.
CityDev executive chairman Kwek Leng Beng said: 'We are confident that South Beach will elevate Singapore's unique branding as a global city and help attract more prominent investors from all over the world.'
CityDev, Istithmar and El-Ad will each hold a one-third stake in the project. CityDev is no stranger to its partners. El-Ad is a US property investment group controlled by Yitzhak Tshuva, to whom CityDev's hotel arm Millennium & Copthorne Hotels sold its stake in The Plaza hotel in New York in August 2004. City e-Solutions, a hospitality business unit of CityDev's parent Hong Leong Group, and Istithmar are partners in a venture that plans to open no-frills hotels in Southeast Asia under Tony Fernandes's Tune Hotels.Com brand.
The development on the 3.5 hectare Beach Road site will be directly next to the Circle Line Esplanade MRT Station and will also be linked by an underground pedestrian network to the existing City Hall MRT Interchange Station. The site can be developed into a maximum gross floor area of 1.58 million sq ft. CB Richard Ellis executive director Li Hiaw Ho reckoned that the developers will sell the apartments to help part-finance the project.
URA said the attractive first-storey layout in the winning scheme includes a series of internal streets, sunken courtyards and tiered gardens lined with shops, and food and beverage outlets. It said the development will be potentially able to achieve a Green Mark Platinum rating, the highest here for buildings that feature energy-efficient, water-efficient and environmentally-friendly design.
'The undulating geometry of the environmental filter canopy is designed to help induce cooling air currents through the spaces below' and the canopy as well as building facades will incorporate photovoltaic cells (solar cells), it added.
URA News Release on 10 Sep 2007
<--------- Who will be the contractor? Woh Hup? Tiong Seng? or CES?
CityDev consortium clinches deal while a bigger bid fails to make the cut
By KALPANA RASHIWALA (SINGAPORE)
As a new symbol of environmentally-friendly architecture was unveiled yesterday, green became the topic of discussion in more ways than one. The award of the former NCO Club/Beach Road camp grounds to a City Developments consortium was accompanied by a tinge of envy as observers pointed out that the winning land bid of nearly $1.69 billion is believed to be around $500 million lower than the top bid, which was not even short-listed under the two-envelope tender.
The Urban Redevelopment Authority chose to first evaluate the various concepts before looking at the money on the table.
CityDev and its partners Istithmar (part of the Dubai World Group) and El-Ad Group are expected by market watchers to invest a total sum of $2.5 billion or more in the project. They plan to develop two towers (45- and 42-storeys high) - that are expected to house two luxury hotels, offices and apartments - and restore four conservation buildings (for retail and hotel-related uses like function rooms).
The cutting-edge green features in the Foster & Partners-designed scheme include slanting facades for the towers to catch winds and direct air flow to ground-level spaces, a canopy covering open areas, linking conservation buildings with two high-rise towers and providing shelter from the elements and drawing air currents to cool the area beneath it. And water will be collected off the towers and the canopy to flow into a holding tank underground, instead of being wasted.
The development, to be called South Beach, is set to become a 'revolutionary New Eco-Quarter in Singapore' when it is completed by 2012, CityDev said.
Still, the price of the winning bid came under some scrutiny.
Of the seven bids on the table, only two - that of the CityDev consortium and a joint venture between Keppel Land and Cheung Kong Holdings - made it past the concept evaluation stage. That is when URA moved onto the second stage of the two-envelope process to award the tender to the higher bidder.
The Keppel Land-Cheung Kong bid was worth $1.39 billion while the CityDev consortium's bid of $1.69 billion was comfortably higher and clinched the deal for it. The winning bid for the 3.5 hectare plot with a 99-year leasehold tenure worked out to $1,069 per square foot of potential gross floor area.
The top bid, believed to be more than $2 billion, had come from one of the other five who tendered but did not make it past the concept stage. They included: a JV between Pontiac Land Group and Morgan Stanley; CapitaLand; another JV between Keppel Land and Cheung Kong; and two bids by Overseas Union Enterprise.
URA said that overall, the CityDev consortium's concept proposal offers a 'compelling and attractive scheme' that would create a 'truly distinctive development and an exemplary showcase of 'green' architecture in Singapore'.
CityDev executive chairman Kwek Leng Beng said: 'We are confident that South Beach will elevate Singapore's unique branding as a global city and help attract more prominent investors from all over the world.'
CityDev, Istithmar and El-Ad will each hold a one-third stake in the project. CityDev is no stranger to its partners. El-Ad is a US property investment group controlled by Yitzhak Tshuva, to whom CityDev's hotel arm Millennium & Copthorne Hotels sold its stake in The Plaza hotel in New York in August 2004. City e-Solutions, a hospitality business unit of CityDev's parent Hong Leong Group, and Istithmar are partners in a venture that plans to open no-frills hotels in Southeast Asia under Tony Fernandes's Tune Hotels.Com brand.
The development on the 3.5 hectare Beach Road site will be directly next to the Circle Line Esplanade MRT Station and will also be linked by an underground pedestrian network to the existing City Hall MRT Interchange Station. The site can be developed into a maximum gross floor area of 1.58 million sq ft. CB Richard Ellis executive director Li Hiaw Ho reckoned that the developers will sell the apartments to help part-finance the project.
URA said the attractive first-storey layout in the winning scheme includes a series of internal streets, sunken courtyards and tiered gardens lined with shops, and food and beverage outlets. It said the development will be potentially able to achieve a Green Mark Platinum rating, the highest here for buildings that feature energy-efficient, water-efficient and environmentally-friendly design.
'The undulating geometry of the environmental filter canopy is designed to help induce cooling air currents through the spaces below' and the canopy as well as building facades will incorporate photovoltaic cells (solar cells), it added.
URA News Release on 10 Sep 2007
<--------- Who will be the contractor? Woh Hup? Tiong Seng? or CES?
KSH Holdings
KSH wins deal to build boutique hotel
The project will be part of Marina Bay's newest lifestyle hub KSH Holdings, a construction and property development group, yesterday said it has won a contract to build a luxury boutique hotel at Clifford Pier.
The contract, which BT understands is worth close to $120 million, is awarded by Hong-Kong listed property group Sino Land, the sister company of Singapore property giant Far East Organization.
The Clifford Pier hotel will be part of Marina Bay's newest lifestyle hub, and will offer a wide mix of complementary uses, including F&B, retail and entertainment outlets, KSH said. Work on the project will start this month and is expected to be completed within 20 months. In December last year, Sino Land won the hotly contested site at Collyer Quay. The site also includes the single-storey Clifford Pier and the former two-storey Customs Harbour Branch Building. Then Sino Land, which is controlled by the family of property magnate Ng Teng Fong, put in the two highest bids out of the three short-listed.
The winning tender of $165.8 million was anchored by a luxury boutique hotel featuring about 120 rooms with 'full sea views'. KSH said that under the terms of the contract, it will provide a range of services for the building of the six-storey hotel, including conserving Clifford Pier and the former Customs Harbour Branch Building.
The new contract brings the total value of construction contracts secured by the company since the beginning of this year to $279 million. The contract also brings the existing order books of the company's construction business to a new high of $405 million. 'Going forward, we are confident that this mega project will further enhance our track record and put us in an excellent position to secure prestigious projects of higher contract values,' said Choo Chee Onn, KSH's executive chairman.
The company also said that its fully owned subsidiary Kim Seng Heng Engineering Construction recently secured three new contracts with a combined value of $63.9 million. KSH's shares gained 3 cents to close at $1.12 yesterday.
The project will be part of Marina Bay's newest lifestyle hub KSH Holdings, a construction and property development group, yesterday said it has won a contract to build a luxury boutique hotel at Clifford Pier.
The contract, which BT understands is worth close to $120 million, is awarded by Hong-Kong listed property group Sino Land, the sister company of Singapore property giant Far East Organization.
The Clifford Pier hotel will be part of Marina Bay's newest lifestyle hub, and will offer a wide mix of complementary uses, including F&B, retail and entertainment outlets, KSH said. Work on the project will start this month and is expected to be completed within 20 months. In December last year, Sino Land won the hotly contested site at Collyer Quay. The site also includes the single-storey Clifford Pier and the former two-storey Customs Harbour Branch Building. Then Sino Land, which is controlled by the family of property magnate Ng Teng Fong, put in the two highest bids out of the three short-listed.
The winning tender of $165.8 million was anchored by a luxury boutique hotel featuring about 120 rooms with 'full sea views'. KSH said that under the terms of the contract, it will provide a range of services for the building of the six-storey hotel, including conserving Clifford Pier and the former Customs Harbour Branch Building.
The new contract brings the total value of construction contracts secured by the company since the beginning of this year to $279 million. The contract also brings the existing order books of the company's construction business to a new high of $405 million. 'Going forward, we are confident that this mega project will further enhance our track record and put us in an excellent position to secure prestigious projects of higher contract values,' said Choo Chee Onn, KSH's executive chairman.
The company also said that its fully owned subsidiary Kim Seng Heng Engineering Construction recently secured three new contracts with a combined value of $63.9 million. KSH's shares gained 3 cents to close at $1.12 yesterday.
Genting International Announcement
SINGAPORE (Dow Jones)--Genting International PLC (G13.SG) said Wednesday it has raised S$2.17 billion from a rights offering to help pay for the development of its Singapore casino-resort. The rights offer followed Genting's issue of S$875 million in convertible bonds, bringing the total fundraising proceeds linked to the project to more than S$3 billion.
The Singapore-listed gaming company said in a statement Wednesday that it has so far awarded contracts worth a total of over S$600 million related to the resort construction.
Genting has said it expects the casino - to be located on Singapore's Sentosa island - to be completed in 2010 at a cost of about S$5.2 billion. Analysts, however, say escalating material prices could push up that figure.
<-------- Few more rights issue? By the way, the tender for the building will only close end 2007. Imported material prices which may be lower due to the winter season..who knows?
The Singapore-listed gaming company said in a statement Wednesday that it has so far awarded contracts worth a total of over S$600 million related to the resort construction.
Genting has said it expects the casino - to be located on Singapore's Sentosa island - to be completed in 2010 at a cost of about S$5.2 billion. Analysts, however, say escalating material prices could push up that figure.
<-------- Few more rights issue? By the way, the tender for the building will only close end 2007. Imported material prices which may be lower due to the winter season..who knows?
Subscribe to:
Posts (Atom)
