Wednesday, 31 December 2008
Capitalism is the Worst System Except for the Rest
The year 2008 will be remembered as one that exposed the fatal flaws in free-market capitalism, sending it to an untimely death.
In Shanghai, New Home Prices Fall More Than 10% in H2
The average unit price of Shanghai’s new residential properties, excluding those built for relocated residents, fell more than 10 percent in the second half of 2008 as compared to the previous six months, a latest industry report has found.
Ready For a Rally?
For much of late 2007 and early 2008, many people in the “real economy” wondered what the financial sector was panicking about. It was only in the autumn that business conditions turned savagely down. By extension, it is quite possible that in the course of 2009 company executives will be bemoaning a slump in both demand and profits at a time when stock markets are rallying in anticipation of recovery in 2010.
Shanghai Closes as the Worst-Performing Stock Market
And the market’s supply/demand balance may actually worsen. The expiry of lock-up periods for investors next year will make 688 billion shares newly subject to selling, more than four times the number which became tradable this year, according to the official China Securities Journal.
Analyst: Equities Are a Waste of Money
Investors who say that equities are their top trades in 2009 do not really understand what is happening in the global economy, says Jim Walker, founder and CEO of Asianomics. He tells CNBC's Martin Soong that they are wasting their money.
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2008 a Year of Triumph and Tragedy for China
From a devastating earthquake to the Beijing Olympics, China witnessed a tumultuous year of triumph and tragedy in 2008 that sorely tested the Communist Party’s ability to manage.
1929 then, and 2008 now...
Back in 1929 Financial Crash, it was said that some Wall Street Stockbrokers and Bankers JUMPED from their office windows and committed suicide when confronted with the news of their firms’ and clients’ financial ruin . . . many people were said to almost feel a little sorry for them…
In 2008, the attitude has changed somewhat…
Awaiting A Breakout From Trading Range
STI has also been in a narrow trading range between 1844 and 1711. From the chart, we can observe that the 50 day moving average also no longer provides support and resistance and should be disregarded at this point in time.
The most immediate numbers for STI support and resistance are 1844 and 1711, the high and low of the range. A close above 1844 should quickly take the STI to the intermediate term high of 1916 where resistance should be strong. We will have to reassess the scenario if the STI does trade to that level as we do not have that much visibility right now. A close below 1711 will take the STI to 1600 which is minor support. The STI will definitely find strong support at 1473, the October low.
Keep Your Wealth for Next Round
A tough 2009...but a speedy recovery is possible once Americans start spending again, says Oei Hong Leong
Studied in China During Tumultuous ‘60s
Mr Oei (fifth from left) who worked on a Chinese farm, visiting Beijing in 1969 with his co-workers.
Mutual Aid Or Mutual Destruction - Andy Xie
As major economies spiral downward in 2009, the ghosts of past financial crises will haunt a divided world
Ex-PBOC Official Warns Further Monetary Easing Could Backfire
A former mainland central banker has called for a halt to the country’s recent flurry of actions to loosen monetary policy, a view partially echoed by analysts.
DTZ Expects 2009 to Echo Property Price Plunge of 2008
Prime district property prices fall by 20%; similar decline seen in 2009
Chery Suffers 8.7pc Decline in Car Sales
Chery Automobile is expected to fall short of its yearly target after sales in the first 11 months dropped 8.7 per cent from last year, hurt by slow domestic and global demand.
Asian Stocks Showing Signs of Bottoming Out
Investors betting on region, with its low debt, high savings
Quake Recovery Central to Chinese Stimulus Plan
In a recovery that will take years, the prosperity of the whole country is at stake. Quake reconstruction is a central plank of the government’s stimulus plan for the ailing Chinese economy. It is set to take one-quarter of a promised spending increase of 4 trillion yuan, or $586 billion, and to create millions of sorely needed jobs.
Chinese Factory Suppliers Feel the Pain from Slump in Exports
Never mind the banks. Shaoxing County in eastern China has started a huge polyester bailout.
Tuesday, 30 December 2008
Chartpoint by KELIVE
The Straits Times Index will likely to continue trade sideways within the 1711 and 1844 band with MACD and RSI indicators reading neutral. Notwithstanding, the STI’s performance is clearly exhibiting a classic symmetrical triangle formation: the signature trait of this chart pattern is extremely low trading activity that precedes either a decisive breakout or in the worst case scenario, a breakdown.
The Next Redemption Wave for Hedge Funds is Mid-January 2009
Hundreds of hedge funds will shut this year as an estimated wave of as much as $700 billion in investor redemptions crashes over the industry, but some managers are trying to hold back the tsunami. At least 75 hedge fund firms, including GLG Partners Deephaven Capital Management, RAB Capital and New Star Asset Management, have put up “gates,” suspended redemptions or unveiled a restructuring this year.
Mainland’s Top Audit Agency to Check Offices, Companies in Hong Kong
The country’s top auditing agency would next year examine how the central government’s agencies and mainland-funded companies in Hong Kong managed state-owned assets, auditor-general Liu Jiayi said yesterday.
Call to Rein in GDP Data Exaggerations
Mainland legislators are calling on Beijing to stop provincial governments compiling their own economic statistics, to clamp down on the doctoring of gross domestic product data.
Pawnshops Return to Fill Niche as Lenders to Small Businesses
After months of rejection from Beijing banks, Wang Fei got the money to start a dried-fruit business by pledging his apartment to a pawnbroker.
Rule Bans Minors in Guangdong from Staying Out All Night
Minors in Guangdong will not be allowed to stay out all night without permission starting on Thursday, under a new rule legal experts say is likely to be unenforceable.
No Room for Lies in Economic Statistics
Mainland statisticians have been steadily earning respect for drawing an increasingly accurate picture of the nation’s economic development. That is a marked contrast to six years ago, when 60,000 violations of statistics laws were reported.
Olympics Marked Mainland’s Entrance Exam into the League of Great Powers
“The west used to look down on China, now they have to look at China from an equal level. They might find it hard to adjust,” he said.
“China can be flexible as long as the core interests are not undermined,” he said. “The Olympics were just like a university entrance test. Now that China has passed, it’s time to move on to a new phase.”
“China can be flexible as long as the core interests are not undermined,” he said. “The Olympics were just like a university entrance test. Now that China has passed, it’s time to move on to a new phase.”
Hard Times
For weeks, China’s leading economists have been babbling away on news talk shows about how certain they are that the mainland’s economy is insulated from the global financial crisis because of its “Chinese characteristics”. The nation’s leaders, however, may now be thinking otherwise, and possibly getting a bit jittery.
Sun East Group’s Executive Chairman Resigns
Sun East Group, which said recently it faced a credit squeeze, said yesterday that its executive chairman Philip Chung has resigned for health reasons.
Esquel’s Path Toward Sewing Success
The Esquel Group may not be a resounding name to most consumers, but people frequently feel pride in wearing a shirt made by it.
Playing Ball
Beijing now accepts the importance of being a global citizen - as long as it serves China’s interests
Another Analyst predicting A MAJOR DEPRESSION
I don’t have a crystal ball, but my forecasts have been fairly accurate and quite profitable over the past few years. While 2008 has been a tough year, all signs point to 2009 being much worse. Here is what I see on the horizon for the upcoming year.
Monday, 29 December 2008
Nation Shows Off its Military Strength
As the mainland’s naval taskforce of two destroyers and one supply ship sails in full force to the pirate-infested Gulf of Aden off Somalia, the high-profile expedition has understandably attracted intense international media scrutiny and speculation over its implications, in the long and short terms.
Man Who Altered History
The approaching close of 2008 should remind us of the day, 30 years ago, that marked the onset of a chain of events that was to alter the course of Asian - and human - history.
Convicted Lawyer’s Best Christmas Gift: Getting Re-Employed
Choy Chee Yean, a veteran arbitration lawyer who was convicted of stealing from a Hong Kong hotel room, received his best Christmas gift yesterday. Choy’s former employer Rajah & Tann LLP has re-employed him as a legal executive. However, in this new position, he can only handle administrative work and not legal matters.
60% of Chinese Investors Suffer 70% Loss on Stock Market
Around 60 percent of Chinese individual investors suffered a loss of more than 70 percent from the country’s bearish stock market this year, an online survey showed today.
Man shoots moviegoer for talking
A man enraged by a noisy family sitting near him in a movie theatre on Christmas night shot the father of the family in the arm, police said.
China Watchdog Tightens Guard on Rat Traders
Until now, many investors still consider turnover as the most important factor guiding investment decisions, as a stock’s swelling trading volume suggests that powerful institutions are the force behind and hence a safe bet.
Flight to Safety Opens Door to Private Banks
The global economic crisis may have pulverized financial markets, but it has also introduced mainland investors to the importance of wealth protection, and that could bode well for the future of the region’s private banking industry.
Asia Markets Suffer Lack of Due Diligence
There has been a lot of finger pointing in the wake of Bernie Madoff’s US$50 billion fraud. The United States Securities and Exchange Commission and other government regulators surely deserve a share of the blame. However, the real question is how so many supposed wizards of Wall Street were taken in by the scam. If a fraud of this scale can be pulled off in the relatively transparent markets of the US, one cringes at the potential scope of the scams moving through Asian markets.
Streets of London - Ralph Mctell
It's been a very long time since I played guitar, and this song brings back fond memories.
China Builds Plan for Low-Income Homes
Housing low-income families and keeping developers honest are goals of an initiative tied to China’s economic stimulus plan.
Bangkok 3-day Protests Begin
Several thousand supporters of exiled former Prime Minister Thaksin Shinawatra launched three days of protests on Sunday, sparking fears of a replay of the mass demonstrations that paralysed the government for months and culminated in an eight-day seizure of the capital’s airports.
Analysis: the Ultimate Power of Printing Money
Instead of building up more currency reserves, China should encourage others to stockpile the yuan.
In Madoff Scandal, Jews Feel an Acute Betrayal
There is a teaching in the Talmud that says an individual who comes before God after death will be asked a series of questions, the first one of which is, “Were you honest in your business dealings?” But it is the Ten Commandments that have weighed most heavily on the mind of Rabbi David Wolpe of Sinai Temple in Los Angeles in light of the sins for which Bernard Madoff stands accused.
Financial Aid to Lure Top Overseas Chinese
The authorities of Guangzhou are doing all they can to lure overseas Chinese talent to work in the southern metropolis.
Don’t Investigate Bosses as it’s Bad for Jobs, Police Told
A high-ranking national police officer has warned colleagues to be cautious in the use of detention and other tough measures in criminal investigations involving corporate executives, citing fear of potential social unrest caused by company closures, mainland media reported yesterday.
Crackdown on Pyramid Schemes, Illicit Banks
Beijing will impose severe penalties on people involved in pyramid sales schemes, underground banking or manipulation of government statistics in a move to strengthen financial security, according to draft revisions submitted to the mainland’s top legislative body yesterday.
China Cuts Air Fuel Surcharges
Business outlook for domestic carriers remain distressed despite fuel price cuts.
Car Slump Jolts Toyota, Halting 70 Years of Gain
A surprisingly grim forecast from Toyota Motor – that it will lose money this fiscal year on its vehicle business for the first time in seven decades – is the latest sign of the global auto industry’s sharp slowdown after years of rising profits and rapid expansion.
Capital Outflow Could Cause China to Sell US Treasury Bonds
Director of the External Debt Department of the State Administration of Foreign Exchange Cai Qiusheng recently revealed that China’s foreign exchange reserve had dropped to under $1.9 trillion.
Cabinet Warns Authorities to Protect Migrants
State Council signals concern over unrest as jobless workers go home
Sunday, 28 December 2008
Big Risk of Mainland Missing Development Goals Amid the Global Crisis, Minister Warns
The mainland is at “grave risk” of missing its goals for social and economic development if it fails to deal properly with problems thrown up by the global financial crisis, the minister for economic planning warned yesterday.
Banks’ Lending Reluctance Undermines Stimulus Plan
The banks can only wait. It is quite probable the government didn’t expect the commercial banks to simply not get in line with PBoC’s monetary and credit policy, but that is what has happened, and what it should have expected, since it decided to promote the marketization of these banks. Welcome to the real world.
Banks’ Lending Reluctance Undermines Stimulus Plan
The banks can only wait. It is quite probable the government didn’t expect the commercial banks to simply not get in line with PBoC’s monetary and credit policy, but that is what has happened, and what it should have expected, since it decided to promote the marketization of these banks. Welcome to the real world.
Printing Money – and its Price
Borrowing and spending beyond ordinary limits largely explains how Americans got into such economic trouble. For decades, businesses and consumers feasted relentlessly, as if gravity, arithmetic and the tyranny of debt had been defanged by financial engineering.
Worker Killed by Ferrari
An Indian national was killed on Saturday after he was hit by a Ferrari along Clementi Road.
Printing Money – and its Price
Borrowing and spending beyond ordinary limits largely explains how Americans got into such economic trouble. For decades, businesses and consumers feasted relentlessly, as if gravity, arithmetic and the tyranny of debt had been defanged by financial engineering.
My Analysis? It’s Time to Stop Believing in Those Analysts
And I don’t care that there were one or two who actually forecast the financial crisis; if you have a universe of analysts who among them hold every conceivable opinion, then at least one of them will always be right at some point. Rather like the old saying that even a stopped clock tells the right time twice a day.
The Rich Prove to be Poor at Looking After Their Fortunes
Credit crunch shows wealthy doesn’t always mean smart
Second-Hand Luxury Goods Defy Slowdown
But while Louis Vuitton has been forced to cancel plans for a new flagship store in Tokyo because of the economic situation, the demand for luxury has not gone away.
Thailand Elite Still Calls the Shots
Ruling class sees rise of rural masses as threat to its dominance
If the former chairman of Nasdaq is a crook, who Can You Trust in America?
Madoff’s fall has planted the seeds of suspicion. We now doubt those we have done business with for years. The presumption of trust is gone.
Global Financial Crisis: Taiwan Stumbles
Taiwan’s economy needs urgent reforms to rescue its middle class and medium sized businesses.
Global Financial Crisis: Life after the Boom
With soaring commodity prices, Africa was starting to flourish before economic problems emerged
SAFE Official Nabbed in M&A Graft Case
Investigators building a criminal case against top officials tied to foreign mergers and acquisitions have detained a new suspect.
Devil’s in Details for China’s Stimulus Plan
Local governments are supposed to help pay for a 4 trillion yuan economic stimulus package. Where will they get the money?
An Asian View of the Global Financial Crisis
Free-market fundamentalism has truly been marked-to-market.
Foreign Automakers in the U.S. Cut Back
Sales are off and production is down, so workers at the Toyota Tundra truck factory here are taking classes: how to handle tools safely, how to get along better with colleagues of varying backgrounds. Some have even cleaned local parks and fed the hungry while collecting Toyota paychecks.
H-Shares Proposed as Hedge Against Forecast 5pc Yuan Slide
An influential member of the mainland cabinet’s think-tank expects the yuan to depreciate against the US dollar as much as 5 per cent next year, and proposes that Beijing consider using its vast foreign exchange reserves to buy H shares.
It Takes Two to Tango
Hong Kong and Guangdong need to get in step to achieve future growth through integrated development
Is the Worst Still Ahead?
The latest macroeconomic news from the United States, other advanced economies, and emerging markets confirms that the global economy will face a severe recession in 2009. In the U.S., recession started in December 2007, and will last at least until December 2009 - the longest and deepest U.S. recession since World War II, with the cumulative fall in GDP possibly exceeding 5 percent.
Paul Krugman: Life Without Bubbles
Whatever the new administration does, we’re in for months, perhaps even a year, of economic hell. After that, things should get better, as President Barack Obama’s stimulus plan - O.K., I’m told that the politically correct term is now “economic recovery plan” - begins to gain traction. Late next year the economy should begin to stabilize, and I’m fairly optimistic about 2010.
Road to Reconciliation
Ma Ying-jeou’s government has brought a dramatic change to cross-strait ties, but the path ahead remains fraught with difficulty
Judicial revision shows more caution over use of death penalty
Beijing is showing more caution in its use of capital punishment by issuing further judicial interpretations of its Criminal Procedural Law, detailing specific circumstances for suspending or overturning death penalties.
Unpaid Vacations, the New Leisure
Shorter working weeks and short-term shutdowns allow firms to retain valuable workforce for when business picks up
Officials Eye Crackdown on Financial Fraud
‘Underground banks’ and other illegal financial schemes are rampant in China. Now, policymakers may clamp down.
Mainland Profit Growth Slows Sharply
The economic slowdown in the mainland cast a damper on companies’ bottom lines on Friday as official data registered a sharp deceleration in profit growth.
Mainland Ports See First Cargo Drop in 7 Years
Cargo volume at mainland ports dropped last month for the first time in seven years due to tightening trade credit and a downturn in the global economy.
Global Financial Crisis: Sinking Sun
The spectre of deflation returns as Japan heads into recession, but this time the policymakers are ready.
Buying Made-in-China? Pay RMB, Please
RMB settlement for goods trade in some areas is being promoted by the government and supporting measures are being formulated. Supervisory departments are planning pilot programs and have recently discussed supporting measures for limited RMB free exchange on a small scale in some areas.
Brown Clouds, Haze on Pollution Watchlist
Scientists say a brown cloud layer blankets huge areas of the planet, including China, threatening the climate and human health.
Banks Face Uncertainty over ‘Financial 30’
The government’s plan for encouraging loans to stimulate the economy is facing resistance from the banking sector.
Expect More Independent Directors to Abandon Ship
Public companies are not required to tell how they have equipped the independent directors. Yet, it is reasonable to believe that most firms prefer to do little because the more knowledgeable the independents are, the more demanding they will be and the more difficult the job of the executives will become.
Central Bank Urges Measures to Lift Spending
Beijing needs to adopt more comprehensive policies to stimulate domestic spending as an economic growth driver to ride out the global financial crisis, the country’s central banker said yesterday.
Fund Managers Brace for a Difficult 2009
Recovery in equity markets likely only late next year or in 2010: poll
Chilean Wines ‘Suffer’ to Thrive
A decade ago, the wineries of Australia and New Zealand were gaining huge chunks of the global wine market. Yet in the sweepstakes for the next decade, I’m putting my money on Chile turning out excellent wines smack in the affordable US$8-15 range. It’s no wonder that US imports of Chilean wine increased 13 percent last year to US$207 million.
Saturday, 27 December 2008
Global Financial Crisis: Weathering the Storm
Meanwhile, watch China and Russia. With Chinese authorities in full stimulus mode through spending, monetary easing and other measures to boost confidence, we see a good chance that construction and commodity demand will begin to recover by the middle of 2009. This could have significant, positive implications for market sentiment. On the other hand, Russia’s severe domestic banking system weakness has been surprising, making this economy a potential downside factor.
Global Financial Crisis: Eastern Edge
Their economies’ new openness set them up for a fall, but the stars of the former Soviet bloc will rise again.
Global Financial Crisis: Surviving the Tsunami
The international financial crisis offers China a valuable opportunity for economic reform
China to Allow Yuan for Trade Settlement
A step forward in making the yuan an international currency; practice limited to designated regions
Economic Stimulus: Easier Said than Done
The Chinese government’s ambitious economic stimulus program looks great on paper. But it’s problematic backstage.
Mutual Funds Show Heavy Losses for 2008
There was one safe bet that mutual fund investors could make in 2008 – that the stock market was a place to lose a lot of money.
“The Biggest Bubble of All . . . U.S. Government Debt”
PhD economist Marc Faber said in a recent interview that the last bubble to crash will be in long-term U.S. treasury bonds. Indeed, Faber has suggested shorting long-term treasuries at just the right moment. (He also is confident that - sooner or later - the U.S will go bankrupt).
China to Lift Auto Sector through Perks to Scrap Cars
China plans to offer incentives for car owners to scrap their old models in favour of new ones, in a bid to lift the auto industry as it enters a period of crisis, state media said Saturday.
Can Banks Save Chengdu’s White Elephant?
A buyer has emerged for part of an elaborate office complex built by the Chengdu city government. But controversy continues
Four Million Migrant Workers Go Home to Henan
Until December 20, more than 3.77 million migrant workers have returned to Henan Province, 60 percent of whom lost their jobs due to the economic slowdown. Henan has the largest population in China and is one of the major labor sourcing provinces.
Proof that China Will No Longer be Bullied
I have stressed several times in this column this year that China will no longer be bullied; recent incidents have proved my point. When French President Nicolas Sarkozy disregarded Beijing’s warnings and met - in his capacity as head of the European Union - the Dalai Lama in Poland, Beijing cancelled the Sino-European summit and its Airbus orders.
Beijing should not rebuff moderating Taipei stance
This is not a time to put the squeeze on Taiwan. This is a time for generosity of spirit.
Wine Lovers Uncork Cellar Stock, Drain Sales
California winemakers feel the pinch as consumers switch to cheaper wines, cut down binges
SGX Should Set Governance Benchmark
In many areas, appearances do not matter. But it does in corporate governance. If the SGX is truly seeking to uphold high standards of corporate governance for the whole market, it has some issues of its own to address.
Quantitative Analysts’ Reputation in Tatters
They’re blamed for compounding risk, exacerbating crash
M&As Seen for Tech, Oil and S-Chip Sectors
Distressed valuation levels provide such opportunities: DBSV
Stimulus Plans Draw Funds to China Stocks
Templeton, BlackRock adding to holdings in China, forecasting stock market recovery
Down to His Last US$500m
Former PM hit by global slowdown, so US$2 billion frozen in Thai banks is now more important
Will the Financial Crisis Bring Upheaval to China?
“You can tell that the senior leaders know political change will come to China eventually and that the Party can’t hang on indefinitely,” says the diplomat. “That’s why 90% of their children are in business, not working their way up the Communist Youth League or whatever. But that change is 15, 20 years down the road. That’s not going to happen now, even if it is a very bad downturn. Change will come to China. But not yet. Not now.”
Dollar Shift: While Americans Spent, Chinese Saved
“Usually it’s the rich country lending to the poor. This time, it’s the poor country lending to the rich.”
Qualifying Tests for Chinese Financial Workers
Chinese regulators have stepped up their policing of banks, ordered them to limit their counterparty risk in overseas derivatives transactions and reviewed trust companies to make sure that they are not taking inappropriate risks. But China’s most unusual response to international financial turmoil has been the government’s decision to increase rapidly the number of qualification tests that are required for workers in the financial sector. The government has also increased the number of people required to take these tests.
China’s Financial Industry Recruits Abroad
Now, in a reverse miniature brain drain, Chinese financial institutions are taking advantage of the downturn and focusing on the newly unemployed to diversify and upgrade their own staffs.
Aggressive Rate Cuts Unlikely as Fears of Yuan Decline Mount
The mainland is unlikely to slash interest rates next year as aggressively as it did this year, because rising expectations of yuan depreciation, a by-product of rate cuts, could undermine Beijing’s efforts to shore up the economy.
SINA acquires Focus Media
SINA Corp, a major Chinese Web portal, is venturing outside the Internet with a US$1 billion-plus (S$1.45 billion) acquisition of most of a leading advertising firm, Focus Media.
Six Centuries Later, China’s Navy Again Shows Up off Somalia’s Seashore
600 years ago, Zheng He, the great navigator of the Ming Dynasty, led an enormous fleet across the Western (Indian) Ocean, and reached the east coast of Africa, touching land at what is now Somali. Now, 600 years later, the Chinese Navy ships will once again leave for the Gulf of Aden. This time, though, they will not be bearing gifts, but arms, as they will enter Somalia waters to combat the recent rampant piracy that is endangering all sea-going traffic in that vital area.
The Ultimate Attempt to Rescue House Market, But Then What?
The Chinese government is putting effort into its attempts to reverse the slump of the real estate market. Besides cutting transaction taxes, it is also now allowing developers with sound credit to issue debentures and real estate investment trusts (reits). This is the government’s first clear funding support for developers in two years.
Throat-Clearing Remedies
Winter can be nasty, especially on the throat. Yet with a little care and some simple TCM recipes, you can get relief from all the itching and scratching, writes Zhang Qian.
Watergate? China Could Write the Script
According to Henry Kissinger, Chinese leaders never understood Watergate and what it meant to Americans. Chinese, of course, don’t understand how democracy really works. But, it seems Americans understand it even less.
Traders Likely to Shun Equity Markets Until 2010
“When the retail guys begin to go away, suddenly all you have is very knowledgeable players playing with each other, and it gets a little dicey,” said Brad Hintz, analyst at Sanford Bernstein, who expects trading volumes to decline until 2010.
Friday, 26 December 2008
More Returning Home for Good
South Koreans account for the biggest group of foreigners living in China, with 700,000 people, followed by the Japanese community with about 115,000.
Wednesday, 24 December 2008
In Madoff scandal, Jews feel an acute betrayal
There is a teaching in the Talmud that says an individual who comes before God after death will be asked a series of questions, the first one of which is, “Were you honest in your business dealings?” But it is the Ten Commandments that have weighed most heavily on the mind of Rabbi David Wolpe of Sinai Temple in Los Angeles in light of the sins for which Bernard Madoff stands accused.
Madoff investor commits suicide
A French investment manager who put $1.4bn (£1bn) into Bernard Madoff’s fraud-hit scheme has committed suicide in his New York office, police said.
Saturday, 20 December 2008
Excessive Optimism the Biggest Mistake of 2008
Normally, the word “I” should have no place in a financial column like Monitor. But once a year I make an exception to the rule, looking back at the columns I’ve written over the last 12 months and seeing what I got right and where I went wrong.
Equity Investors Look to China as Safe Haven Amid Global Recession
Greater China remains the most favoured destination for Asian equity investors largely because fund managers are relatively optimistic about the economy even in a global recession, according to a Merrill Lynch survey.
Did Madoff Work Alone?
Benard Madoff’s contention that he pulled off one of the biggest financial frauds in history without any help is being met with disbelief by his investors and experts in the securities industry.
Car Prices Drop 0.8pc on Softening Demand
Prices for passenger vehicles on the mainland fell 0.8 per cent last month as dealers fought to win customers in the slowing vehicle market, but analysts said they did not expect a further decline.
Western-Style Politics not for China: Hu
Chinese President Hu Jintao declared yesterday that China would never turn back from its policy of reform and opening up, but it would also not go down the path of a Western liberal democracy.
After 30 Years of Reform, Economic Perils on China’s Path
The ruling Communist Party threw itself a big party on Thursday. The country’s leadership marked the 30th anniversary of the reform era that transformed China into a global economic power and, in doing so, changed the world.
Bernanke May Not Stay in Office to See Fruits of His Labour
There’s a possibility Obama is grooming Summers to replace the Fed chief
Chinese Manufacturing Giant Outgrows its Cradle
When China opened up to capitalists 30 years ago, Jeffrey Lam was one of the pioneers. But the only space he could find for his factory was an old town hall. For workers, he had 25 farmers who had never operated a sewing machine.
Global IPO Activity Falls by More Than Half: E&Y Report
Global initial public offering (IPO) activity has fallen by more than half from the record-breaking pace of last year.
New Error-Trade Rules to Boost Trading Discipline
$500 review fees; need to report errors within 30mins
Tug-of-War in the Final Weeks of 2008
Factors at play range from window-dressing hopes to Fed rate cut to Wall Street expectations
Beijing Raises Consumption Taxes
The mainland announced significantly higher consumption taxes on a range of fuel products after it implemented a cut in fuel prices yesterday.
14b Yuan in Aviation Oil Bills Unpaid
China Aviation Oil, a supplier of jet fuel, said unpaid bills by mainland airlines have risen to 14 billion yuan (HK$15.8 billion) as the industry grapples with falling demand, according to a mainland newspaper.
Analyst Tips Long and Turbulent Bear Market
Morgan Stanley expected a long and tumultuous U-shaped bottom in mainland and Hong Kong stock markets as the economy continued to worsen despite government aid, its Asia strategist said yesterday.
Toyota Could Show First Loss in 71 Years
Toyota Motor Corp, the world’s biggest carmaker and Japan’s biggest company, is on track to report its first annual parent-only operating loss since it was established 71 years ago, the media reported yesterday.
Visa rules open door for more Shenzhen residents to visit city
People from other provinces living in Shenzhen will be allowed to apply for Hong Kong visas through the individual visit scheme without returning to their home provinces, the chief executive has announced.
Suitcase Makers Locked in Plant to Foil Protest
Guangdong police held hundreds of protesting workers inside a suitcase factory to prevent them staging a public demonstration about a wage dispute yesterday, a labourer in the plant claimed.
Anger Over Call ‘to Show Patriotism’ by Buying a House
A high-profile Beijing professor is under fire for calling on the public to show its patriotism by putting its money into the housing market.
Dongguan May Shift Priority from Hi-Tech Hub Plan
Authorities in Dongguan, possibly the mainland city worst hit by the financial crisis, have apparently shelved long-standing ambitions to be a hi-tech hub after the State Council released Pearl River Delta regional development guidelines.
Sudden Property Play and Fed Rate Cut Take Centrestage
As themes go, it’s probably as good as any, coming at a time when activity was subdued, volume low and the Wall Street mood seemingly positive. We’re speaking here of the sudden push on property stocks that stood out this week and helped propel the Straits Times Index up midweek and for most of yesterday before running into a wall of selling in late afternoon.
Property Stocks Rally on China’s Fiscal Boost
But measures might have limited impact on reviving sales amid tough economic conditions, analysts say
Chinese Firm Eyes Listing Through Zhongguo Jilong Acquisition
Shareholders of Zhongguo Jilong, which has been under judicial management since July last year, may soon find themselves holding shares of Chinese firm Changjiang Fertilizer Holdings (CJFH) instead.
Size of the DPS Behemoth
10,450 sold & uncompleted private homes under the DPS now; analysts worried about those getting TOP in 2010-11
Markets May Rally in 6-12 Months: Greenspan
Financial markets, which have been depressed by ‘fear’ not seen since at least the 1930s, are likely to rebound in the next six to 12 months, former Federal Reserve chairman Alan Greenspan said in a commentary published by The Economist online.
SGX to Make it Easier for Listed Firms to Raise Funds
One key measure is to shorten the period for rights issue
Bleak Times Ahead for Region’s Building Sector
Report sees value of projects shrinking but analysts say situation here will be better
Provinces to Boost China’s 2009 Growth Rate
Count on China’s provincial governments to push through stimulus measures needed to hoist the economy’s growth rate to 8 per cent next year, says an influential Beijing academic.
Banks Too Cautious Over Lending?
This despite Govt’s plan to bear up to 80% of risk to help some SMEs
China’s Booming Art Scene Loses its Lustre
Zhang Xiaogang's Bloodline: Big Family No. 2 from Hollywood director Oliver Stone's collection sold for HK$26.4 million (S$4.9 million) at Christie's auction in Hong Kong last month, well below the pre-sale estimate of HK$40 million.
Shanghai Man Jailed for Abandoning Mother
A Shanghai man who refused to care for his ailing 83-year-old mother and abandoned her in a public city square has been sentenced to 18 months in prison, a newspaper and court official said Friday.
China Hunt for Foreign Debtors
China, hit by a slowdown in manufacturing from the global downturn, will pursue foreign investors who flee the country to escape failed business investments and debt, the Xinhua news agency said on Saturday.
10,450 on Deferred Payment Scheme
Cash-strapped buyers may sell low if they can’t get sufficient loans
5 Stocks That Could Die in 2009
It’s been a bloody year for many companies. Which might be next on the chopping block in 2009? These five top my death watch list.
Friday, 19 December 2008
Ferro China Starts Restructuring Procedures
Bankrupt Ferro China resumes operations under close scrutiny of a court to repay its debt.
Global Economy Seen Sinking into ‘Severe’ 2009 Recession
A major banking group warned the global economy will sink into “severe” recession next year as Japan’s battle to stave off a prolonged contraction was on Friday hit by predictions of zero growth into 2010.
Crude Oil Tumbles Below $36 as Demand Drop Swells Inventories
Crude oil was steady after falling 22 percent this week to plunge below $36 a barrel for the first time since June 2004 amid declining demand and the weakening economy.
Mass influx of migrants triggers job fears inland
Up to 9 million migrant workers have left coastal areas this year amid diminishing job prospects and falling wages, prompting fears that unemployment in inland provinces may increase sharply next year.
Nouriel Roubini: The $700 Billion Bailout Isn’t Enough
Do you think stocks have bottomed?
No, I don’t think so. Of course, in the last few weeks we have been in another bear market rally, but bear market rallies have occurred for the last 12 months. Markets rally after shocks, and then shocks come and they fall further.
No, I don’t think so. Of course, in the last few weeks we have been in another bear market rally, but bear market rallies have occurred for the last 12 months. Markets rally after shocks, and then shocks come and they fall further.
A New Trading Power Emerges
The year 1986 was a big one for China in terms of opening itself up to the world.
Beijing Delays Stock Reform Plan
Beijing will delay the launch of margin lending and short selling on mainland stock markets as it needs time to fine-tune the mechanism, according to a senior regulatory official.
Diplomatic Strategy Paves the Way for China’s Rise
When British historian Paul Kennedy gave his assessment of the international political scene 20 years ago, his remarks on China were harsh.
Economic Stimulus Meets Provincial Shortage of Capital
The central government has released its series of stimulation plans and policies, but implementation of these policies has become a key point in whether China will be able to maintain 8% GDP growth next year. Local governments and banks are expected to shoulder a great bit of the capital needs but may be unable or unwilling to as the situation stands.
Latest Real Estate Rescue Efforts Not Enough, Again
The Chinese government is likely to see little effect from its latest measures to promote housing consumption, as they have not bettered policies of local governments across the nation. The real estate market slump, having already lasted a year and a half, seems a safe bet to continue.
China’s Stimulus Needs Refocusing
China’s real estate stimulus is misdirected. It should be trying to help farmers and small businesses, not property owners.
Thursday, 18 December 2008
High-speed rail to connect Shanghai, Kunming by 2015
A feasibility study is underway for a new high-speed rail line between Shanghai and Kunming, construction of which is expected to begin in 2009, according to Kunming media reports.
Tolls Out, Taxes Up for Fuel Price Reform
By increasing fuel taxes and eliminating fees and road tolls, China expects to end a decade of debates over fuel price reform
Steel Price Decline Boosts Chinese Shipbuilders
China’s inland waterway shipbuilding industry sees a revival due to declining steel prices.
Paying the Price for China’s Milk Scandal
Hospitals and parents of babies sickened by melamine-tainted milk powder formula are shouldering huge costs they can’t pay.
Mixed Signals for China’s Smoking Control
Chinese delegates at a global tobacco-control conference gave anti-smoking forces new reasons to cheer and jeer.
Emphasis on Upstream Industry Supports Imbalances
Beijing is more concerned about production than about consumption, increasing dependence on exports.
Blackwater ‘Could Lose Iraq Role’
Blackwater could lose its licence to operate in Iraq, rendering it unable to provide security for US diplomats, a US State Department internal report says.
Madoff Relied on ‘Irrational Euphoria’
They too offer inside knowledge in return for a fee and should be asked the same question that more people should have asked Mr. Madoff - if this scheme for making money is really so good, why sell it at all?
Why not simply use the technique to make money yourself?
Why not simply use the technique to make money yourself?
Madoff under curfew on $10m bail
Bernard Madoff, the hedge fund boss accused of a $50bn (£32bn) fraud, has put up $10m bail and in effect been placed under house arrest.
‘Worldwide Problem’ in 2009
The president of the World Bank warned Thursday of a ‘worldwide’ struggle in the first half of 2009 as deepening global economic woes hit countries in Asia.
China to Send Warships
China will send warships to the seas off Somalia to help international efforts to fight piracy there, the Foreign Ministry said on Thursday, in what would be the first operation of its kind for Beijing.
Stop Eating Cats
A southern Chinese province must stop the ‘shameful’ and ‘cruel slaughter’ of cats for food, a group of more than 40 animal lovers in Beijing said on Thursday as they unfurled banners in a tearful protest.
Olam
Daily chart indicates a bullish flag, range trading 1.14 to 1.23. Looking at 1.36.
Hourly chart indicates an up move soon.
Noble Group
Now that forced selling is over, it's possible to break 1.11 resistance to test upper BB at 1.16. BB can also expand to 1.29.
ST (white lines) is opening up and piercing through the LT (red lines). When the ST cross over the LT convincingly, stock becomes very bullish.
Singapore Shares End Up On Property Companies, But Rally Seen Brief
Singapore shares ended higher Thursday, lifted by developers on hopes of lower interest rates, but analysts warned the bull run in both the property sector and benchmark index will likely be short-lived.
China Will Never Turn Back
Chinese President Hu Jintao pledged on Thursday that China would never turn back on its path of opening to the world, as he led celebrations for the nation’s 30 years of spectacular economic reforms.
Revealed: why Evra was blamed for pitch battle
FA accuses Manchester United staff of giving ‘unreliable’ evidence
What do you expect from ManUure players and staffs (and manager)?
What do you expect from ManUure players and staffs (and manager)?
We're In a Year-End Bear Market Rally
Watch Video
The markets are currently in the midst of a self-fulfilling prophecy -- an end of the year bear market rally, notes Kirby Daley, senior strategist at Newedge Group. He tells CNBC's Martin Soong more.
The markets are currently in the midst of a self-fulfilling prophecy -- an end of the year bear market rally, notes Kirby Daley, senior strategist at Newedge Group. He tells CNBC's Martin Soong more.
Yanlord +7.6% On China’s New Property Measures
0254 GMT [Dow Jones] Yanlord Land (Z25.SG) top percentage gainer on STI, +7.6% at 2-month high of S$0.925, boosted by new measures by China to support ailing property market. Among measures, anyone who has owned a home for at least 2 years (vs at least 5 years previously) can now sell it without having to pay tax, while those selling a home less than 2 years after buying it will pay taxes only on profit, not on total sales price. Developers will also get aid in securing loans from banks. “With the introduction of new stimulus policies, property stocks would react positively in the near term,” says UOB KayHian, but adds China’s economic slowdown, challenging employment situation still raise concerns on whether new measures can boost sustainable sales. Resistance likely at S$1.00, last tested in mid-October. (FKH)
‘Sea Turtles’ Head Home
They were the ‘gold-collar’ workers: highly educated Chinese people working on Wall Street.
Wednesday, 17 December 2008
China Needs More Domestic Reforms
Beijing risks inflicting even more damage to the world economy by reflexively slowing market reforms in response to the financial crisis. China’s leaders should quicken, not slow, the pace of reform to help the country weather the storm.
Chinese Automakers Consider Poaching Talent From US Big 3
After considering the risk of buying US auto manufacturers’ assets, Chinese automakers realized that targeting their research and development (R&D) talent would be a more realistic and profitable option.
China Cuts Home-Sales Tax as Property Slump Deepens Slowdown
China will reduce a tax on home sales to stem a property-market slump that may drive the world’s fourth-biggest economy into the deepest slowdown since 1990.
Economists: China’s Economy Has Bottomed
A flood of data in November shows a deeper sliding Chinese economy but the flipside of the bad news is that China may strike bottom in late-2009 and the path from there will lead upwards.
Chinese Graduates Recruited for Rural Work
Song Peng village, China: Liu Hao, who graduated in June with a degree in manufacturing from a Beijing technical school, found a job he loves - in a village of 288 people surrounded by peach orchards.
Work to begin on Lugu Lake airport in 2009
One of the biggest tourism destinations in Yunnan without an airport has just jumped into the queue. The Yunnan Civil Aviation Bureau announced that construction will begin next year on Lijiang Lugu Lake Airport, according to a Kunming Daily report.
Olympics Over, China Said to be Blocking Web Sites Again
The Chinese government has quietly begun preventing access again to Web sites that it had stopped blocking during the Olympic Games in China in August, Internet experts said on Tuesday.
Returning Migrant Workers Put Strain on Home Provinces
Swarms of migrant workers driven back home by the economic downturn in eastern provinces are putting huge social and employment pressure on the governments in their hometowns.
Sitting Pretty on Cash Mines
Valuation of a clutch of companies has gone below NAV, but they aren’t easy pickings for asset strippers
The ‘Liquidity Trap’ Could Happen
In the very near future, the Board of Governors of the Federal Reserve System could instruct the Open Market Committee in New York to target Federal Funds to a rate close to zero per cent. Such a position will be bullish for China’s positions in U.S. government bonds.
Why there may be confusion over legal notion of innocence: Forum
Professor Woon spoke of, inter alia, the notion of innocence. He said acquittal is not always tantamount to innocence. The accused could be factually guilty but legally innocent. ‘I don’t understand why is it so hard to grasp,’ he said.
China says lending to US will not go on forever
China warned Wednesday it would not keep lending money to the US economy indefinitely, even as new data showed it had consolidated its position as the top buyer of American government bonds.
China’s Jobless a Worry
More than a million Chinese college graduates unable to find work could make coping with unemployment harder now than it was during the Asian crisis, the head of China’s largest vocational training organisation said.
On 7 December 2007, RBS paid $100bn for ABN Amro
For this amount it could now buy:
Citibank $22.5bn
Morgan Stanley $10.5bn
Goldman Sachs $21bn
Merrill Lynch $12.3bn
Deutsche Bank $13bn
Barclays $12.7bn
And still have $8bn change which you would be able to pick up GM, Ford, Chrysler and the Honda F1 Team!
Citibank $22.5bn
Morgan Stanley $10.5bn
Goldman Sachs $21bn
Merrill Lynch $12.3bn
Deutsche Bank $13bn
Barclays $12.7bn
And still have $8bn change which you would be able to pick up GM, Ford, Chrysler and the Honda F1 Team!
HSI - Technical Analysis by DB
Last week on Monday, the HSI took out resistance of the upper confine of a consolidation at 14,254. Key-resistance and next upside objective at 15,318 was cleared in Wednesday’s session. This breakout establishes an intermediate-term uptrend and confirms a double bottom. On Friday a pullback occurred. This consolidation which is still in place could extend towards gap support at 13,875 without negating the current uptrend. A decisive close below it would turn the bias neutral again. Next resistance above 15,781 is seen at 15,962 and around 16,250.
Bio-Treat: Pledged Assets To Lender After Loan Default
SINGAPORE (Dow Jones)--Singapore-listed Bio-Treat Technology Ltd. (B22.SG) pledged all of its assets to a lender Dec. 9 after defaulting on a HK$360 million loan facility.
Bio-Treat, in a filing with the Singapore Exchange Friday, said its assets were pledged in favour of Precious Wise Group Ltd., which was once a substantial shareholder.
The Chinese waste and wastewater-treatment firm said a fixed-first charge over the shares it holds in several units has been created for Precious Wise, and that all dividends, interest and distribution related to the shares will be given to Precious Wise.
Bio-Treat said it is “working to rectify the default” but didn’t provide details.
Bio-Treat, in a filing with the Singapore Exchange Friday, said its assets were pledged in favour of Precious Wise Group Ltd., which was once a substantial shareholder.
The Chinese waste and wastewater-treatment firm said a fixed-first charge over the shares it holds in several units has been created for Precious Wise, and that all dividends, interest and distribution related to the shares will be given to Precious Wise.
Bio-Treat said it is “working to rectify the default” but didn’t provide details.
Mentor Minister Lee Kuan Yew Optimistic on China
Thirty years after the Middle Kingdom threw open its gates and embarked on economic reforms, it will enter a tougher phase of progress, predicts Minister Mentor Lee Kuan Yew.
Noble May Rise; Raises US$80M For Refinancing
2353 GMT [Dow Jones] Noble Group (N21.SG) may test current December high of S$1.10 as news of supply chain manager raising US$80 million shows banks still confident in company’s business model amid slowing commodities demand, tight credit conditions. Amount raised from 2-year Islamic loan facility, arranged by HSBC, will be used to refinance existing debt, for working capital. While Noble’s balance sheet widely regarded as more resilient than those of other Singapore-listed commodity firms, investors still wary how company will be affected by reduced demand, falling prices for commodities. But OCBC Investment Research says Noble’s diversification strategy will pay off; “we take comfort in the group’s business model, which generates earnings from a diversity of activities, namely marketing fees, assets and arbitrage. Further diversification is derived from its pipeline of varied commodities spanning energy, agriculture and metals.” Stock closed flat at S$1.04 yesterday. (FKH)
Graft a long-seated tradition in Illinois
State’s unusually lax laws allow corruption to thrive: Prosecutors
Henderson to test market with discounts
Hong Kong’s third-biggest property developer, Henderson Land Development, is poised to test the market with a limited release of discounted units in 10 residential projects it built on the mainland over the past three years.
JB-bound motorists fume over $21 toll card
Confusion reigns as some think that’s how much they have to pay to cross checkpoint
Second-home loan restrictions may soon be lifted
Restrictions on financial institutions issuing loans to second-home buyers may soon be relaxed, Shanghai Securities News reported on Dec 15.
Shanghai Volkswagen to cut output as sales slow
Shanghai Volkswagen, a key carmaker on the mainland, will extend its regular maintenance work and scale back production as it seeks to reduce inventory amid slowing sales, according to a source.
Singapore’s Star Rises as Switzerland Stumbles
As pressure mounts on Switzerland’s flagship bank UBS and the country’s secrecy code comes under fire from the United States and Germany, Singapore’s star as a haven for the super-rich is rising fast.
Stable Asia ‘won’t be high priority’ for US
Obama team’s top focus on reviving economy, Mid-East issues; China also ranks high: Envoy
80-minute journey ends a 59-year wait
Fanfare in Taiwan at arrival of first daily direct flights and maritime cargo
Counting the high cost of growth
“People used to be indifferent about pollution on their doorstep. But now they know about its adverse impact on their health and the environment, they cannot sit by and endure further suffering.”
Police brutality up in rural areas
Cases of police abuse have surged in Henan as millions of jobless farmers have returned home after factory closures in coastal regions.
Reporter who went missing for 2 weeks held by police
A Beijing-based journalist who disappeared two weeks ago during an investigation in Taiyuan , Shanxi province , was being held in police custody yesterday in Hebei on suspicion of taking bribes.
Temple move highlights major challenges as waters rise behind Three Gorges Dam
“This is the reality about the Three Gorges Dam. It may be a first-class infrastructure project, but it is located in one of the poorest mountainous regions in the world.”
The Real Ponzi Behind the ‘Scheme’
Charles Ponzi’s biographer contends that he was just a dreamer without a good exit strategy.
Tuesday, 16 December 2008
Anti-laundering drive nets 150b yuan
The value of laundered money that was uncovered in the first nine months of the year soared to almost 150 billion yuan (HK$170.15 billion), about five times last year’s total, according to state media.
No rebound in steel until second quarter of next year, say experts
The mainland steel industry, the world’s largest, would not see a significant rebound in demand until the second quarter of next year, even though Beijing had promised a series of measures to help, analysts and steelmakers said yesterday.
Merrill Lynch Oil Guru Blanch Shifts From Bull to Bear and Back
Francisco Blanch, the Merrill Lynch & Co. analyst who called the $147.27 record crude-oil price nearly on the nose, sent markets into a tailspin with his forecast that the next move may be back to $25 a barrel in 2009. Such relief for consumers may be short-lived once the global recession ends, he said.
Why Toyota wants GM to be saved
A GM failure would cause production problems, crush already weak demand and potentially open the door to low-cost competitors.
Internet Explorer security alert
Users of the world’s most common web browser have been advised to switch to another browser until a serious security flaw has been fixed.
Dog That ‘Waited’ 5 Years for Owner Gets New Home
The black mutt was tossed out onto the streets five years ago after his former owner passed away, but he kept wandering outside his old home as if waiting for his owner to come back.
To Enter the Market, or Not – Charting Indecision
Let’s use Singapore’s Straits Times Index (STI) as an example.
The Biggest Ponzi Scam of All?
You’d have to wonder - has Wall Street fully digested the enormity of Bernard Madoff’s alleged US$50 billion hedge fund fraud?
Bio-Treat Acts on Loan Default Notice
Bio-Treat Technology’s entire group assets have now been pledged in favour of Precious Wise Group - following the lender’s serving of a notice of default relating to a HK$360 million loan facility.
Ex-CAD director Knight joining Colin Ng
Former Commercial Affairs Department director Glenn Knight is joining law firm Colin Ng & Partners as a partner in its dispute resolution practice group, the firm said yesterday.
Developer sales perk up with new launches
Launch momentum may continue; price becomes key factor to move sales
World braces for 5% ‘uncharted’ China growth
Used to double-digit growth, China could see pace sink to 5% in 2009 from 9.7% this year, says IMF
Singapore’s Role in China’s 30 Years of Reform, Opening Up
Historic moment: Mr Deng arriving in Singapore in November, 1978, to a warm welcome from Mr Lee. It was Mr Deng's first and only official visit to the Republic. Mr Lee recalls in his memoirs how he had prepared an ashtray for Mr Deng despite a no-smoking rule at the Istana. 'It was a gesture to a great figure in the history of China,' he says.
The Original Ponzi Scheme
Charles Ponzi pioneered the scam that bears his name, through which he bilked US$10 million from thousands of investors in the 1920s.
Madonna gives Guy £50m in divorce
Madonna has paid former husband Guy Ritchie around £50m as part of their divorce settlement.
Oil producers could face prolonged buyers’ market
With the economy in the throes of a global recession, oil producers are facing the toughest business environment in 25 years.
Famous Shanghai bar faces up to forced move
Rupert Murdoch and the Backstreet Boys will have to head elsewhere for drinks when they are next in Shanghai after the closure over the weekend of Face Bar.
Expect growth to bounce back in 2009 and ‘10
It is difficult to be an optimist about the mainland’s economic prospects next year, amid the deepening gloom of the global financial crisis.
Investors Should be Wary of Underestimating Risks - Again
In a nutshell, investors should be wary of placing too much faith in their hope to keep markets afloat, at least until the present disconnect between the underlying economy and market expectations converge. In short, be careful of underestimating risk again.
Stock Market Analysts Look Past the Pain
Rough ride ahead but bank on bottom-fishing opportunities in 2nd half-year, they say
Monday, 15 December 2008
China’s Fuel Tax Launch Boosts Fuel-Efficient Car Competition
The national fuel tax reform has finally been given a launch date of January 1, 2009, and will have a profound influence on China’s auto industry, regardless of possible changes to implementation rules.
Coastal Provinces Determined to Dump Labour Intensive Industries
China’s export growth in November, at –2.2%, was the first negative growth in the past seven years and reveals the serious economic slide in China’s coastal areas that depend mainly on exports. Southern China’s rich Guangdong Province, producer of 1/3 of China’s goods for export, is the biggest loser. But this is strengthening the determination of these areas to readjust their economic structures.
The 17th Floor, Where Wealth Went to Vanish
The epicenter of what may be the largest Ponzi scheme in history was the 17th floor of the Lipstick Building, an oval red-granite building rising 34 floors above Third Avenue in Midtown Manhattan.
When socialism turned Marxism on its head ...
The break with the ideological past that still can’t be confronted
Declining Inflation a Worrying Sign
It was only a few months ago that newspapers around the world, including this one, were covering the intense debate over the cause of rising inflation on the mainland.
Corruption - The Ugly Side of the Economic Reform Boom
For years, Shanghai could do no wrong, racing along with double-digit growth and offering a blueprint for a modern China. So when the city’s highest leader, Communist Party secretary Chen Liangyu, was sacked for corruption in 2006, it tarnished the Shanghai model of development.
Commodities Lines Cast Far and Wide
Mainland firms scouring the world for miners, projects find prices have fallen to appetising levels
Chinese Reporter Chasing Corruption Claims Disappears
A Chinese newspaper reporter investigating a suspicious real estate deal has not been seen since hotel security tapes showed five men pushing him into a car two weeks ago, a local newspaper and a colleague said on Monday.
China’s Press Tests its Boundaries
Journalists increasingly pushing the envelope with eyeball-grabbing exposes, juicy scandals
Calls Mount for Debate on Stimulus Package
Calls are mounting for more transparency over the mainland’s ambitious economic stimulus package, as more details trickle out about its biggest ever public spending campaign.
Bankruptcy - Seeking to Achieve a Fine Balance
Official Assignee strives to ensure that bankrupts make genuine efforts to repay their creditors
$180,000 - that’s how much investor loses in foreign exchange trades in 3 months
High-risk investments can make or break an investor, especially during the current troubled times.
Singapore to Recover in 2010?
Swiss bank UBS expects Singapore’s economy to shrink by 0.5 per cent next year but to bounce back with growth of 4 per cent in 2010.
Shoe Thrown at President Bush in Iraq
But in the middle of a news conference with Mr. Maliki in the Green Zone, Iraqi television journalist Muntadar al-Zaidi stood up and shouted “this is a goodbye kiss from the Iraqi people, dog,” before hurling a shoe at Mr. Bush which narrowly missed him.
With his second shoe, which the president also dodged, Mr. Zaidi said: “This is for the widows and orphans and all those killed in Iraq.”
Hong Kong Faces Another Deflation Reckoning
Recent steep price falls in China have made deflation the new economic bogeyman, and another sizeable rate cut could be on the cards. Hong Kong is anxiously watching this unravelling on the mainland as it tries to avoid being tipped into another painful deflationary cycle.
Bush Says Auto Bailout Not Ready
President George W. Bush said on Monday an announcement on a auto industry rescue was not imminent, leaving the industry’s fate clouded in uncertainty for a little longer.
Wall Street Icons Likely to Bleed Red Ink
Analysts continue to slash quarterly estimates for battered Wall Street duo Goldman Sachs and Morgan Stanley; losses now expected for both firms.
Sunday, 14 December 2008
Chen’s Graft Charges Stun Democratic Taiwan
“This is a case of how power corrupts a man,” said political commentator Yang Hsien-hong. “Chen used his power to amass wealth, and hoped to buy a political comeback with the wealth he amassed.”
Picture looking grim for Shenzhen artists’ village
The world’s leading centre for mass-produced works of art, a mainland village once famed for its reproductions of famous masterpieces, is now picturing a gloomy future amid the global financial meltdown.
Deflation Alert as Global Crisis Hits Mainland
Chief banking regulator says GDP growth must not go below 8pc
Your Memory Is Bigger and Better Than Scientists Expected
If you’re tired of hearing about memory loss, there’s some encouraging research from Massachusetts Institute of Technology http://web.mit.edu/ about how good people’s visual memory really is.
Sperm Quality Linked to Cleverness
Intelligent men produce better quality sperm, researchers have found. They say the discovery suggests an unexpectedly close relationship between intelligence and general evolutionary fitness.
Harvard Hit by Loss as Crisis Spreads to Colleges
Harvard University’s endowment suffered investment losses of at least 22% in the first four months of the school’s fiscal year, the latest evidence of the financial woes facing higher education.
China’s Exporting Powerhouse Reports Foreign Trade Contracted by 13%
In November, the total import and export value of Guangdong Province, China’s leading exporting province and the base of Made in China, was $ 53.35 billion, down 13% over the same period last year.
Panda Bonds Could Help China Avoid the Risks of US Treasury Bonds
The Panda bond is RMB-dominated and issued by foreign financial institutions (governments, companies, and international organizations). Panda bond’s buyers should be Chinese financial institutions, mainly commercial banks. Overseas financial institutions, short of USD, can buy USD from Chinese counterparts with RMB after getting RMB fund. Besides paying regular interest in RMB, bond issuers would repay principal in RMB to the bond holder (Chinese commercial banks) when the bond matures.
China and Neighbours Agree to Settle Trades in their Own Currencies
Despite its closed capital account and the lack of easy exchange of its currency, China is working to set up a trade payment system using RMB, and has signed an agreement on free choice of bilateral trade settlement currency with eight neighbouring trading partners.
Economical Society of Singapore: Crisis
The writer attended a discussion organised by the Economic Society of Singapore two days ago. Present were Manu Baskaran, Khor Hoe Ee, Ho Ching, J Y M Pillay and several bankers. Below are some of the more interesting points raised which you may find instructive or useful:
Revving China’s Auto Industry
Cars leave me cold, but not the BYD F3DM. I drove it the other day, and it really is remarkable.
To Settle or Not: Let Prosecutor Decide?
Should the final decision whether or not to compound certain offences lie in the hands of the prosecution?
Vice Dens Back in Business
One of the most notorious symbols of prostitution in Beijing has reopened in another signal the city’s vice industry has roared back to life following an Olympic crackdown.
Diaoyu Mission ‘Carefully Timed’
Beijing carefully planned a mission on Monday by two ships into contested territorial waters near the disputed Diaoyu Islands to declare sovereignty, according to a mainland publication.
Commodity Countries Reeling
When China hits the brakes, commodities exporters half a world away have to shift to a lower gear, as the rapidly deteriorating fortunes of the copper sector shows.
Taiwan-China Shipping Links
China and Taiwan will start a new era of direct air and shipping services on Monday when planes and ships travel directly across the Taiwan Strait, formally ending a nearly six-decade ban on regular links.
Unrest a Blow to Democracy
Lawless protests that shuttered Thailand’s airports will be seen by authoritarian regimes in an increasingly undemocratic Southeast Asia as a vindication of their own iron rule, analysts say.
Crunch Time For Borrowers
Banks are being more conservative, say observers, but lenders deny tightening credit
Singaporeans’ Habits Abroad Make Me Grind My Teeth
Never mind the accent or our obsession with wearing slippers everywhere. The biggest tell-tale sign of a Singaporean tourist is his eyebrow-raising habits.
Nude couple in car died from suffocation
13-year-old girl and older man fell asleep in the car with the air-conditioning unit operating
For the defrauded, little solace
The zoning lawyer in Miami trusted him because his father had dealt profitably with him for decades. The officers of a little charity in Massachusetts respected him and relied on his advice.
Fraud case may erode investor confidence
Frauds on Wall Street aren’t unheard of. But a $50 billion Ponzi scheme, one that purportedly struck at boldface names on several continents, is a bombshell by any standard.
Saturday, 13 December 2008
Mainland oil giants slide after Goldman review
Shares of Hong Kong-listed mainland oil giants PetroChina, China Petroleum & Chemical Corp (Sinopec) and CNOOC, slumped by more than 10 per cent yesterday after Goldman Sachs cut its average oil price forecast for next year, saying crude may drop to US$30 a barrel in the first quarter, and cut its ratings on some oil stocks.
Mainland Home Sales Fall 20.6 Percent
Sales of private housing on the mainland dropped 20.6 per cent in the first 11 months from a year earlier, the National Bureau of Statistics reported yesterday.
China Energy Oversupply Seen
The mainland may face an oversupply of energy over the next two years, as demand growth slows at the same time that many new energy projects are set to start operation, a National Energy Administration official said.
Top prosecutor sorry for Chen Shui-bian
He felt sorry for former President Chen Shui-bian, who made him the nation’s top prosecutor, had to be indicted by the Special Counsel for corruption and money laundering.
Zhonghui suspends share trading as debts cloud future
Zhonghui Holdings has suspended trading of its shares, citing uncertainties over whether it would be able to meet its financial obligations and continue as a going concern.
AG Woon: Wealth is not a factor
To those who question if there are separate laws for the rich and the poor, Singapore’s top prosecutor is most definite: Wealth is not a factor in the wheels of justice.
My own family scolds me for the cases I take
Lawyer Subhas Anandan was with his friends in a private room at an expensive nightclub when a hostess walked in. Her smile faded when she recognised him as the lawyer in the Kallang body parts case.
Taiwan’s Lee Teng Hui Faces Probe
Taiwanese prosecutors are to investigate former president Lee Teng-hui on suspicion of money laundering, following the indictment of his successor Chen Shui-bian on corruption charges, a report said on Saturday.
China’s Economy Sliding Deeper
A series of figures show the Chinese economy will continue to slide before recent economic stimulus policies become effective. And it may be too early to declare that the economy would bottom out in November. It is concluded at the Central Conference on Economic Affairs that pressure on economic sliding is growing heavier and enterprises facing more operation difficulties.
2009 China’s Holiday
New Year: January 1st (Thu) - 3rd (Sat). Back to work on January 4th (Sun.).
Lunar New Year: January 25th (Sun) - 31st (Sat). Back to work on February 1st (Sun).
Qing Ming Festival: April 4th (Sat) – 6th (Mon).
Labour Day: May 1st (Fri) – 3rd (Sun).
Dragon Boat Festival: May 28th (Thu) – 30th (Sat). Back to work on May 31st (Sun).
National Day and Mid-Autumn: October 1st (Tue) – 8th (Thu). Back to work on October 9th (Fri)
Lunar New Year: January 25th (Sun) - 31st (Sat). Back to work on February 1st (Sun).
Qing Ming Festival: April 4th (Sat) – 6th (Mon).
Labour Day: May 1st (Fri) – 3rd (Sun).
Dragon Boat Festival: May 28th (Thu) – 30th (Sat). Back to work on May 31st (Sun).
National Day and Mid-Autumn: October 1st (Tue) – 8th (Thu). Back to work on October 9th (Fri)
Alleged Fraud Hits Investors
Investors scrambled to assess potential losses from an alleged $50 billion (S$74.5 billion) fraud by Bernard Madoff, a day after the arrest of the prominent Wall Street trader.
- Angry investors gather at headquarters
- Collapse puts pressure on market
- Were red flags ignored?
China’s Economy Sliding Deeper
A series of figures show the Chinese economy will continue to slide before recent economic stimulus policies become effective. And it may be too early to declare that the economy would bottom out in November. It is concluded at the Central Conference on Economic Affairs that pressure on economic sliding is growing heavier and enterprises facing more operation difficulties.
Olam Buys Back US$118m Convertible Bonds
With clearing price at 65%, firm paying US$76.44m, funded by new 3-year loan
More clarity needed at Zhonghui
Zhonghui Holdings investors are on tenterhooks - and for good reasons. First was news last week that United Overseas Bank (UOB) has demanded repayment of two outstanding loans totalling about $19.6 million. And second, there is worry over whether the company’s proposed solution to meet the debt repayment will work.
Independent directors of Advance Modules upset
Management not giving sufficient info on state of affairs at units, they lament
Chinese car sales hit by slowdown
Chinese car sales have plummeted and the country's retail sales have slowed as the global economic downturn hits the economy.
Good English the way to go
Since independence, Singapore has adopted English as our language of use for business and government. As a result, we have gained a competitive edge as English is the lingua franca on the Internet and in a globalised world.
New Taoist College to offer diploma course
It opens this month and hopes to encourage the young to study Taoism
Internet presents opportunities, potential dilemmas for Beijing
Official statistics suggest that only 19.1 per cent of the mainland’s population has access to the internet, lower than the world’s average of 21.1 per cent. The figure for South Korea and Japan is about 70 per cent.
Buy in anticipation, sell on news?
There are no discernible improvements in the US or HK economies yet, but stocks react as if there are, rising sharply
All are equal under the law, says AG Woon
Impartiality rules; no undue influence allowed in quest for justice in Singapore
Family or football? Er, that’s a tough one
Worldwide survey shows Singaporeans are crazy about BPL
Singapore's favourite player is Liverpool's Spanish striker Fernando Torres.
Singapore's favourite player is Liverpool's Spanish striker Fernando Torres.
Property investment sales slow to a trickle
Players wary of big bang deals amid weaker sentiment, tighter financing
Remisiers push for alternative to buying-in market
Remisiers’ body also calls on SGX to consider scrapping short-selling fines
Time for the lecturer to become the lectured
Oh, what a difference 30 years - or even two years - can make. When China got rid of class struggle and world revolution after the death of Mao Zedong and opted for economic development, it was a willing student of the West, especially of the United States, on how to run a market economy.
Friday, 12 December 2008
Strange goings-on in the Hong Kong stock market
Anyone who is not a professional share trader can be forgiven for wondering what on earth is going on in the Hong Kong stock market at the moment.
ICBC to increase lending to smaller firms by 15pc
The Industrial and Commercial Bank of China, the mainland’s largest lender, said yesterday it would increase lending to small and medium-sized enterprises by at least 15 per cent in each of the next three years.
Beijing expected to make bold tax adjustments next year
Beijing will most likely take bolder steps to cut taxes next year as it boosts household and corporate incomes to avoid a sharp economic slowdown.
Goldman cuts mainland growth forecast to 6pc
Economic outlook worsens on drop in exports, investment
Sinking reserves force Russia to devalue again
Russia devalued the rouble for the fifth time in a month, widening its trading band against the US dollar and euro after reserves fell US$161 billion defending the exchange rate.
Mainland retail sales hold up well, but outlook weak
Mainland retail sales held up better than expected in November, but the government said some industries had run into severe trouble and forecast further weakness next quarter before the economy bottoms out.
Property Stock Rally Will be Brief, Say Analysts
Shares of Hong Kong developers gained yesterday for a third day yesterday as investor confidence was boosted by encouraging sales of new projects and expectations of interest rate cuts soon.
Possible compensation for ‘frivolous’ prosecution
Judges could soon have the power to order costs and compensation for an accused person if they find that the prosecution had been ‘frivolous’ in bringing charges against him.
Evidence may be revealed to defence before trial
If the proposed changes to the Criminal Procedure Code are passed, lawyers may have gone some way in getting what they had been clamouring for, for years - a level playing field with the prosecution.
Charged with Corruption
Taiwanese prosecutors on Friday indicted former president Chen Shui-bian on corruption charges, a spokesman said.
State Public Prosecutor General Chen Tsung-ming, left, announcing that former President Chen Shui-bian has been indicted on on corruption charges on Friday.
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