Source: Yahoo! News Singapore
LONDON (AFP) - - The US economy shrank by 0.5 percent in the third quarter, official data showed on Tuesday as Britain edged ever closer to a recession and the IMF's top economist warned of a second Great Depression.
The abrupt contraction of gross domestic product (GDP) in the world's largest economy, confirming a first estimate, was seen by analysts as marking the start of a steep downturn for the United States after GPD growth of 2.8 percent in the second quarter.
Britain's economy also shrank by 0.6 percent in the three months to September compared to the previous quarter, against a previous estimate of 0.5-percent contraction, the Office for National Statistics said.
Britain and the United States will be in recession if their economies contract again in the fourth quarter, according to the traditional definition of a recession as two consecutive quarters of negative economic growth.
The IMF's top economist, Olivier Blanchard, warned governments around the world should boost domestic demand in order to avoid a Great Depression similar to the downturn that shook the world in the 1930s.
"Consumer and business confidence indexes have never fallen so far since they began. The coming months will be very bad," Blanchard said in an interview with the French newspaper Le Monde.
"It is imperative to stifle this loss of confidence, to restart household consumption, if we want to prevent this recession developing into a Great Depression," he added.
New data out in France offered some respite from the gloom, however, showing that household consumption of manufactured goods -- a key growth indicator -- rallied 0.3 percent last month after slumping in October.
"It is a first small Christmas present for the French economy," said Alexander Law, an economist at the Xerfi research centre in Paris.
But in Italy, retail sales figures went down 0.3 percent in October.
Denmark's economy contracted 0.4 percent in the third quarter and the Dutch economy showed zero growth, official data showed. Finland's unemployment rate rose to 6.0 percent in November from 5.8 percent a month earlier.
Elsewhere in Europe, the Polish central bank cut its key lending rate by 75 basis points to 5.00 percent, following a further cut in interest rates in Hungary on Monday by half a percentage to 10.0 percent.
The European Central Bank issued some heartening pre-Christmas data showing that the eurozone's current account deficit narrowed to 6.4 billion euros (9.0 billion dollars) in October from 8.8 billion euros in September.
News of weakening growth sent the British pound sliding under 1.0550 euros, nearing a record low of 1.0463 reached last week, as dealers bet on more interest rate cuts from the Bank of England and forecast parity with the euro.
The dollar also drifted lower against the euro and the yen in muted trading conditions ahead of the Christmas holidays. In late morning trading, the euro firmed to 1.3959 dollars, from 1.3944 dollars in New York late on Monday.
European stocks rose in early afternoon trading after the announcement of US GDP figures, with the FTSE 100 index in London up 0.80 percent, the Frankfurt Dax up 0.89 percent and the CAC 40 in Paris up 0.51 percent.
Asian stocks closed mostly down, with the Hong Kong stock market shedding 2.8 percent and Shanghai sinking 4.55 percent as a smaller-than-expected Chinese interest rate cut failed to boost market sentiment.
Oil prices also fell further to below 40 dollars a barrel in Asian trade, with New York's main futures contract, light sweet crude for delivery in February, shedding eight cents to 39.83 dollars a barrel.
The contract had fallen to 39.91 dollars in New York on Monday.
Energy analysts were also keeping a close eye on a meeting of key world gas exporters in Moscow amid fears of a "gas OPEC" similar to the Vienna-based oil cartel that could raise natural gas prices.
In a keynote speech, Russian Prime Minister Vladimir Putin told the conference that the "era of cheap gas" for consumers was coming to an end because of the expense of developing new fields.
Venezuelan Energy Minister Rafael Ramirez said: "We see in this forum an opportunity to build a solid organisation, which has in its foundation the same principles that gave birth to OPEC."
Wednesday, December 24, 2008
Saturday, December 20, 2008
Reduction of Oil Production by OPEC
Source: OPEC
As annouced by OPEC, there's a reduction in oil prices, and it sees the current oil prices dropped. New York oil prices have dropped below $34 per barrel.
We will wait for the next surge in oil price.
As annouced by OPEC, there's a reduction in oil prices, and it sees the current oil prices dropped. New York oil prices have dropped below $34 per barrel.
We will wait for the next surge in oil price.
Friday, December 19, 2008
Singapore says 10,000 homes bought via deferred payment
Source: Yahoo! News
Singapore says 10,000 homes bought via deferred payment
Reuters - Friday, December 19
SINGAPORE, Dec 19 - Singapore said on Friday there were 10,450 uncompleted private homes purchased under the country's deferred payment scheme, revealing for the first time the potential number of homes that may be returned to developers.
About 4,560 of these homes are scheduled for completion next year while another 2,540 will be ready in 2010, the Urban Redevelopment Authority said in a statement.
Singapore introduced the deferred payment scheme in 1997 in a bid to boost the then-moribond property market. The scheme, which was withdrawn in 2007, allowed buyers to buy property under construction without lining up bank financing in advance so long as they made a downpayment of 10-20 percent.
The recent fall in Singapore home prices, coupled with the financial crisis that has made banks reluctant to lend, has led to concerns about a jump in the supply of unsold homes due to the failure of buyers to get loans.
"The data is provided to enable the public to make a better informed assessment of the private housing market," URA said.
Singapore says 10,000 homes bought via deferred payment
Reuters - Friday, December 19
SINGAPORE, Dec 19 - Singapore said on Friday there were 10,450 uncompleted private homes purchased under the country's deferred payment scheme, revealing for the first time the potential number of homes that may be returned to developers.
About 4,560 of these homes are scheduled for completion next year while another 2,540 will be ready in 2010, the Urban Redevelopment Authority said in a statement.
Singapore introduced the deferred payment scheme in 1997 in a bid to boost the then-moribond property market. The scheme, which was withdrawn in 2007, allowed buyers to buy property under construction without lining up bank financing in advance so long as they made a downpayment of 10-20 percent.
The recent fall in Singapore home prices, coupled with the financial crisis that has made banks reluctant to lend, has led to concerns about a jump in the supply of unsold homes due to the failure of buyers to get loans.
"The data is provided to enable the public to make a better informed assessment of the private housing market," URA said.
Thursday, December 18, 2008
World Bank head sees worldwide problem in 2009
Source: Yahoo! News Singapore
AFP - 50 minutes agoSINGAPORE, Dec 18, 2008 (AFP) - The president of the World Bank warned Thursday of a worldwide struggle in the first half of 2009 as a deepening global economic crisis hits Asian countries.
Robert Zoellick also cautioned against a return to trade protectionism that could worsen the crisis.
"I am afraid that the first six months of 2009 are going to be a problem worldwide, including in Asia and including in Southeast Asia," Zoellick told a news conference during a visit to Singapore.
The Bank said in a report last week that the Asia-Pacific region remained reasonably well-placed to weather the global slowdown but will see growth ease to 5.3 percent in 2009 from 7.0 percent this year.
It said the global economy would expand a mere 0.9 percent next year and world trade volume would fall 2.1 percent, the first drop in 26 years.
"In the discussions that I have had with people around the world, no one has a very good prediction for the length and depth of this crisis," Zoellick said.
Government monetary and fiscal policy, as well as open trade systems, will determine whether the situation can improve later next year, he said.
"Particularly I am concerned about the rising dangers of protectionism," he added, describing as "unfortunate" the difficulties encountered during the Doha Round of talks on a new global trade pact.
"The international system needs to stay on offence on trade because protectionist forces will raise their heads," he said.
The so-called Doha talks started at the end of 2001 in the Qatari capital. They aim to boost international commerce by removing trade barriers and subsidies, but a deal has proved elusive.
Developing countries, including China and India, want the industrialised world to scrap agricultural subsidies, while Western powers are seeking greater access for their products in emerging markets.
"Whatever parties can do to try to get the Doha Round back on track would be vitally important," Zoellick said later at a dialogue session with students from a local university.
"This financial and economic and unemployment problem is serious enough.
"If we start to trigger a round of protectionism, as you saw in the 1930s, it could deepen (the global crisis)."
Pascal Lamy, the head of the World Trade Organisation (WTO), last Friday scrapped plans to hold a ministerial meeting on the trade talks, citing the "unacceptably high" risk of failure and dashing hopes that the long-delayed global trade pact could be clinched this month.
The World Bank, which provides financial and technical assistance to developing countries, said last week that healthy growth in recent years had left major economies such as China in good shape to fight the global crisis with macroeconomic measures.
But it said "in the near term, downside risks are substantial" due to recessions in developed markets.
Zoellick, who was recently in China, said that country's leaders expected to see a decline in growth because of the global slowdown but that they were struck by the sharpness and the depth of the fall in exports.
The World Bank forecast 7.5 percent growth for China next year, which would be its slowest in nearly two decades.
Zoellick was in Singapore to sign a memorandum of understanding with the city-state to strengthen and expand collaboration on development assistance.
"Singapore and the World Bank Group intend to play a positive and growing role in helping countries tackle critical policy challenges especially in the area of urban management," said a statement from Singapore's foreign ministry
AFP - 50 minutes agoSINGAPORE, Dec 18, 2008 (AFP) - The president of the World Bank warned Thursday of a worldwide struggle in the first half of 2009 as a deepening global economic crisis hits Asian countries.
Robert Zoellick also cautioned against a return to trade protectionism that could worsen the crisis.
"I am afraid that the first six months of 2009 are going to be a problem worldwide, including in Asia and including in Southeast Asia," Zoellick told a news conference during a visit to Singapore.
The Bank said in a report last week that the Asia-Pacific region remained reasonably well-placed to weather the global slowdown but will see growth ease to 5.3 percent in 2009 from 7.0 percent this year.
It said the global economy would expand a mere 0.9 percent next year and world trade volume would fall 2.1 percent, the first drop in 26 years.
"In the discussions that I have had with people around the world, no one has a very good prediction for the length and depth of this crisis," Zoellick said.
Government monetary and fiscal policy, as well as open trade systems, will determine whether the situation can improve later next year, he said.
"Particularly I am concerned about the rising dangers of protectionism," he added, describing as "unfortunate" the difficulties encountered during the Doha Round of talks on a new global trade pact.
"The international system needs to stay on offence on trade because protectionist forces will raise their heads," he said.
The so-called Doha talks started at the end of 2001 in the Qatari capital. They aim to boost international commerce by removing trade barriers and subsidies, but a deal has proved elusive.
Developing countries, including China and India, want the industrialised world to scrap agricultural subsidies, while Western powers are seeking greater access for their products in emerging markets.
"Whatever parties can do to try to get the Doha Round back on track would be vitally important," Zoellick said later at a dialogue session with students from a local university.
"This financial and economic and unemployment problem is serious enough.
"If we start to trigger a round of protectionism, as you saw in the 1930s, it could deepen (the global crisis)."
Pascal Lamy, the head of the World Trade Organisation (WTO), last Friday scrapped plans to hold a ministerial meeting on the trade talks, citing the "unacceptably high" risk of failure and dashing hopes that the long-delayed global trade pact could be clinched this month.
The World Bank, which provides financial and technical assistance to developing countries, said last week that healthy growth in recent years had left major economies such as China in good shape to fight the global crisis with macroeconomic measures.
But it said "in the near term, downside risks are substantial" due to recessions in developed markets.
Zoellick, who was recently in China, said that country's leaders expected to see a decline in growth because of the global slowdown but that they were struck by the sharpness and the depth of the fall in exports.
The World Bank forecast 7.5 percent growth for China next year, which would be its slowest in nearly two decades.
Zoellick was in Singapore to sign a memorandum of understanding with the city-state to strengthen and expand collaboration on development assistance.
"Singapore and the World Bank Group intend to play a positive and growing role in helping countries tackle critical policy challenges especially in the area of urban management," said a statement from Singapore's foreign ministry
Monday, December 15, 2008
Laguna Park crosses 80% treshold
Source: Todayonline. 15 Dec 2008
Despite challenging situation of the current property market, owners of Laguna Park had consented the enbloc sales process, for a price of $1.8 million to $2.3 million for their units instead of the initial hope of $3 million last year.
The current asking price would amount to approximately $1.2 billion for the 667,000 square feet site with plot ratio 2.8, amounts to around $643/sqftppr.
Depite being one of the rare plots having superb seaview, with it's leasehold tenure, it may be difficult for developers to purchase and relaunch at a remarkable profit condisering high construction cost currently.
Despite challenging situation of the current property market, owners of Laguna Park had consented the enbloc sales process, for a price of $1.8 million to $2.3 million for their units instead of the initial hope of $3 million last year.
The current asking price would amount to approximately $1.2 billion for the 667,000 square feet site with plot ratio 2.8, amounts to around $643/sqftppr.
Depite being one of the rare plots having superb seaview, with it's leasehold tenure, it may be difficult for developers to purchase and relaunch at a remarkable profit condisering high construction cost currently.
Wednesday, December 10, 2008
Parent companies of some MNCs to cut jobs; staff in S’pore may be affected
Channel NewsAsia - Wednesday, December 10SINGAPORE: Many multinational corporations are planning to retrench workers in Asia due to the economic downturn. Among them are Sony Electronics and Nomura, a financial services group. It’s believed staff at their Singapore offices will be affected.
Sony’s Japan headquarters announced that it is cutting 8,000 jobs worldwide as demand for consumer electronic goods has slowed significantly.
Sony said its headquarters is now reviewing its operations in each country.
While there are no specific numbers available for Singapore, what’s clear is that Sony is cutting costs.
Reports have also said that Japan’s biggest brokerage Nomura is laying off 100 people in Asia this year, including some in Singapore.
It is said the positions will be in its equity operations in places like Hong Kong and Singapore.
Nomura said it’s evaluating business opportunities and is now making strategic decisions about resource allocation and employee numbers.
Singapore’s labour movement urged Sony and Nomura to justify the headcount cut.
Halimah Yacob, Deputy Secretary—General, NTUC, said: "What these two companies will have to do is to explain the circumstances under which these retrenchments are being carried out, that they have exhausted all other possibilities and not just merely say this is the headquarters’ instruction to them."
Madam Halimah doesn’t believe the latest retrenchments will trigger a snowball effect, prompting other MNCs to do the same.
She added: "Workers do look at the kind of employers they want to work with so when employers resort to retrenchments when there’s no necessity, then obviously when times are better and they need workers they’ll find it a lot harder to get workers."
Observers said it’s not entirely surprising that companies like those in the electronics and finance industries are resorting to retrenchments. But companies are once again reminded to implement and exhaust all the tripartite guidelines first to cut costs.
Some measures under the guidelines include introducing shorter work weeks and flexible work arrangements. — CNA/vm
Sony’s Japan headquarters announced that it is cutting 8,000 jobs worldwide as demand for consumer electronic goods has slowed significantly.
Sony said its headquarters is now reviewing its operations in each country.
While there are no specific numbers available for Singapore, what’s clear is that Sony is cutting costs.
Reports have also said that Japan’s biggest brokerage Nomura is laying off 100 people in Asia this year, including some in Singapore.
It is said the positions will be in its equity operations in places like Hong Kong and Singapore.
Nomura said it’s evaluating business opportunities and is now making strategic decisions about resource allocation and employee numbers.
Singapore’s labour movement urged Sony and Nomura to justify the headcount cut.
Halimah Yacob, Deputy Secretary—General, NTUC, said: "What these two companies will have to do is to explain the circumstances under which these retrenchments are being carried out, that they have exhausted all other possibilities and not just merely say this is the headquarters’ instruction to them."
Madam Halimah doesn’t believe the latest retrenchments will trigger a snowball effect, prompting other MNCs to do the same.
She added: "Workers do look at the kind of employers they want to work with so when employers resort to retrenchments when there’s no necessity, then obviously when times are better and they need workers they’ll find it a lot harder to get workers."
Observers said it’s not entirely surprising that companies like those in the electronics and finance industries are resorting to retrenchments. But companies are once again reminded to implement and exhaust all the tripartite guidelines first to cut costs.
Some measures under the guidelines include introducing shorter work weeks and flexible work arrangements. — CNA/vm
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