Buyers might want to delay their property purchases till a clearer picture emerges, say experts THE Singapore property market has turned somewhat jittery in the face of growing fears about a recession in the United States. Analysts suggest that unless buyers need a home to live in, they might want to delay any purchases until […]
Archive | January, 2008
TOP OF THE NEWS: The dome picked for Sports Hub
KALLANG will have one of the world’s biggest domes dominating its landscape by the end of 2011, to replace the 35-year-old National Stadium. The Singapore Sports Hub consortium has pipped two other groups for the right to build and run the Sports Hub for 25 years, it was announced yesterday. The Government will pay the […]
WALL STREET: White House plan fails to lift stock market gloom
NEW YORK – THE White House’s effort to boost the economy with a US$150 billion (S$216 billion) stimulus plan failed to lift market sentiment as stocks tumbled for a fourth day on Friday, closing out the worst week for the S&P 500 in five years. Investors’ main worry was that the effort may not prevent […]
Regent Garden en bloc sale contested
(SINGAPORE) Allgreen Properties’ purchase of Regent Garden via a collective sale is now being contested by the majority sellers of the property, the company said in a filing to the Singapore Exchange yesterday. BT understands that the majority owners, who together own 25 of the 31 units and over 80 per cent of the share […]
Hotel rooms during F1 race period going fast
RATES of $1,000 a night and higher have not deterred Formula 1 fans from snapping up trackside hotel rooms for the inaugural Singapore Grand Prix. Hotels ranging from the glitzy Ritz-Carlton Millennia Singapore to the Peninsula-Excelsior Hotel are already fully booked for the Sept 26 to 28 race. This is despite significantly higher than normal […]
Investors reckon US already in recession
Markets, key indicators are plunging, reflecting sentiment that outlook appears to be very bleak NEW YORK – WHILE the chairman of the United States Federal Reserve told Congress on Thursday that a recession could still be averted, Wall Street sent Washington a different message: It is already here. The Dow Jones Industrial Average plunged 306.95 […]
Inflation seen eating into pay hikes this year
Real take-home pay increases will be subdued: HR group INFLATION is likely to take a big bite of that fat pay rise this year. With Singapore workers looking forward to some of the biggest pay rises in the developed economies at 5 per cent, ECA International, a global club of human resource practitioners, says real […]
Singapore may dodge recession in 2008: economists
SINGAPORE – Singapore’s export-driven economy, which shrank in the fourth quarter, will feel the impact of a slowdown in the United States but will just avoid recession, analysts said on Friday. Weak exports figures on Thursday suggested the government’s Jan 2 advanced estimate showing the economy shrank in the fourth quarter at an annualised and […]
Exports lurch to worst showing in five years
NODX hit by electronics slump; jury still out on 2008 as US slowdown looms (SINGAPORE) Even the economists were caught off-guard. They had expected Singapore’s key non-oil domestic exports (NODX) in December to grow at a healthy clip, compared to a year ago. Instead, they fell 4.5 per cent on the heels of a […]
Dubai govt investment arm eyeing China, says CEO
(SINGAPORE) Dubai government investment agency Istithmar is mulling investments in China, the Wall Street Journal quoted its chief executive as saying yesterday. Istithmar comes under the umbrella of the state-owned Dubai World, which also includes DP World, a container port handler that was forced by lawmakers in the United States to sell its US assets […]
Data shows recession in some US states, industries
Economists see signs damage is spreading to states; industries now unaffected (WASHINGTON) A wide range of data from the government, private corporations and independent analysts paints a picture of a nation that is already in recession in some states and industries, while much of the nation and big parts of the economy have suffered little. […]
LATEST US DATA: Housing starts plunge 14% in December
Building permits post biggest fall in 12 years as housing slump deepens (WASHINGTON) Builders in the US broke ground in December on fewer houses than forecast, making 2007′s decline in homebuilding the worst in almost three decades. The 14 per cent decrease to an annual rate of 1.006 million, the lowest since 1991, followed a […]
Sub-prime losses could near half a trillion dollars: study
TOKYO – Potential losses from US mortgage woes could top US$460 billion worldwide with aftershocks to be felt until late 2008, a Japanese private think tank estimated on Friday. The Japan Research Institute said in a report that combined losses to be suffered by financial institutions and investors worldwide could reach US$463.6 billion ‘in the […]
Bush, Bernanke back economic rescue plan
No specifics yet, but package is likely to include tax rebates (WASHINGTON) US President George W Bush and Federal Reserve chairman Ben Bernanke yesterday embraced calls for an economic stimulus package to avert recession. Mr Bernanke said that such a plan should be quickly implemented and temporary so that it will not complicate longer-term fiscal […]
Merrill takes US$11.5b sub-prime writedown
Largest US broker posts first full-year loss since 1989 (NEW YORK) Merrill Lynch reported a second straight quarterly loss after writing down US$11.5 billion of subprime mortgages and bonds, ousting its chief executive officer and losing almost half of its market value in 2007. New York-based Merrill said yesterday that it suffered a fourth-quarter net […]
Buddy, can you spare a few billion dollars?
US banks seek foreign govt, other funds, but for how long will they be obliged? (NEW YORK) First hard-pressed Wall Street banks turned to rich foreign governments for help. Now, they are seeking aid from the likes of New Jersey and big mutual funds to bolster their weakened finances. Citigroup and Merrill Lynch said on […]
1,098 HDB flats now open for balloting
THE Housing Board yesterday launched a ballot for the sale of 1,098 flats in Bedok, Clementi, Queenstown and Jurong West with demand for public housing staying on the boil. The flats are surplus units from the board’s Selective En bloc Redevelopment Scheme, which relocates residents from ageing blocks to new ones nearby. Such flats are […]
Home prices stay firm even as property stocks retreat
Amid weak sentiment in a quiet market, many players are adopting a wait-and-see attitude SINGAPORE’S property stocks have been taking a hammering lately but the property market has so far remained unscathed. After riding the boom to dizzy heights, property counters have now dropped by up to 60 per cent or so from their high […]
Nominal wages could rise 5% this year: Survey
SINGAPORE employees can expect a hefty 5 per cent pay rise this year, on average, according to a new survey, up from 4.5 per cent last year. However, a rising inflation rate could mean their real spending power barely changes, despite the rise. The survey, carried out by human resources organisation ECA International, is based […]
CHINESE ECONOMY’S SUPER-GROWTH
‘Growth’ problems won’t go away yet THE Chinese economy, having chalked up an average growth rate of 9.7 per cent for over two decades, sustained another year of double-digit growth last year, at 11.5 per cent. This was first announced by Premier Wen Jiabao on Nov 20 last year whilst visiting Singapore. Soon after this, […]
Export growth slumps to slowest pace in five years
2.3% figure is well under official forecasts of between 4% and 6% growth A SURPRISE contraction last month capped a disappointing year for Singapore exports, which missed official targets as growth slumped to its slowest pace in five years. Expansion last year hit just 2.3 per cent, well under official forecasts of between 4 and […]
Lie low till next quarter, Credit Suisse tells investors
THE Singapore stock market will continue its wild swings for the next few months – so keep clear. That was the health warning from Credit Suisse’s head of Asian equity research, Ms Fan Cheuk Wan, who believes the bourse will start to stabilise and head north in the second quarter. She estimates that regional markets […]
Borrowing costs swell as banks clamp down
NEW YORK – STUNG by billions of dollars in bad debts, banks in the United States are clamping down on loans, making borrowing costlier for the consumers and companies that are the best hope for keeping the US economy out of recession. Economists are increasingly worried that reluctant banks plus skittish borrowers will create a […]
Fed chief backs quick action to help US economy
But Bernanke says Fed is not forecasting recession; Bush also sees need for fiscal stimulus WASHINGTON – FEDERAL Reserve chairman Ben Bernanke yesterday threw his support behind efforts to craft a fiscal stimulus package, and repeated that the United States central bank was ready to act aggressively to counter recession risks. The remarks came shortly […]
Forget forecasts, US may be in recession already
Misreading economy not unusual due to mixed signals from various sectoral data WASHINGTON – FOR all the complex ways in gathering economic data and crunching it at the speed of light, predicting recessions is still an inexact science. ‘It’s the economy, stupid,’ said Mr Bill Clinton and he was elected President in 1992 on promises […]
Merrill’s losses in fourth quarter balloon to $14b
Write-downs of $21b force world’s largest brokerage to declare worst-ever quarterly hit NEW YORK – MERRILL Lynch, the world’s largest brokerage, lost nearly S$10 billion (S$14.3 billion) in the fourth quarter, its biggest quarterly loss since it was founded 94 years ago, after reporting US$14.6 billion (S$20.9 billion) in write-downs. Of the five biggest Wall Street […]
Next wave of US housing woes could come from the rich
At risk are owners who bought too many homes or borrowed too much against them HINSDALE (ILLINOIS) – A HOUSE in the wealthy Chicago suburb of Hinsdale, Illinois, is far beyond the reach of most Americans. Unfortunately, Hinsdale may also now be too expensive even for some of the people who already live there. ‘There […]
US hurdles force Dubai state fund to look to China
Istithmar among such funds seeking out less developed markets to avoid excessive scrutiny DUBAI government investment agency Istithmar is considering investments in China, after being rebuffed in the United States, The Wall Street Journal reported yesterday. Istithmar comes under the umbrella of state-owned Dubai World, which also includes Dubai Ports World (DP World), a container […]
US may get economic stimulus plan in 30 days
Package on fast track in Congress after rival parties reach agreement WASHINGTON – AN ECONOMIC stimulus package to avert a possible recession in the United States could be passed within 30 days, a leading US congressman said. The package is on the fast track in Congress after Democratic and Republican leaders in the US House […]
UK housing market falls in Dec
Worst performance since aftermath of 1992 recession (LONDON) UK real estate professionals said that December was the worst month for the housing market since the aftermath of Britain’s last recession in 1992. The number of real estate agents and surveyors saying that prices fell exceeded those reporting gains by 49.1 percentage points, the Royal Institution […]
Marina Bay Suites priced around $3,000 psf
Over 600 potential buyers, half foreigners, have registered interest to buy units in 221-unit project AT around $3,000 psf, the next luxury development to go on sale – Marina Bay Suites – looks like it could actually be quite reasonably priced, especially as luxury home prices have trended towards the $4,000 psf range. Revealing […]
All eyes on Fed as main line of defence against recession
Many sceptical that spending measures, tax cuts will help (CHICAGO) Concern that the Federal Reserve’s interest rate cuts will have a limited impact on economic growth, and may risk fuelling inflation, have led to calls for a fiscal policy boost for the US economy. But many are sceptical that Congress or the White House can […]
Another bid to stop sale of Gillman Heights
A GROUP of minority owners at the Gillman Heights condominium is making another bid to stop the $548 million collective sale of the huge estate in Alexandra Road. They filed a High Court appeal yesterday against last month’s decision by the Strata Titles Board (STB) to approve the sale to CapitaLand and other parties. Among […]
Marina Bay Suites to go on sale this month
PREVIEW sales of the posh Marina Bay Suites will start before the end of the month, even though sentiment in the property market remains weak and the stock market is very rocky. About a year ago, apartments like this – in the new downtown and preferably with a bay view – were setting new price […]
Little-known trader made billions from sub-prime bust
THE big losers in the United States sub-prime crisis are well-known – Citigroup, Merrill Lynch and UBS. But probably the biggest winner is Mr John Paulson, a little-known hedge fund manager who made an estimated US$3 billion to US$4 billion (S$4.3 billion to S$5.7 billion) for himself from the crisis – believed to be the […]
Real estate firm’s offices smashed after closures
Customers and staff lash out; company blames China govt policies for its woes BEIJING – EMPLOYEES and customers of a leading real estate company have smashed its offices after the closure of some 1,000 of its branches across China. Chuanghui said it had closed more than half of its 1,800 outlets since October. A company […]
Rise in US consumer prices largest in 17 years
WASHINGTON – UNITED States consumer prices rose 0.3 per cent last month and for all of 2007 they shot up at the fastest rate in 17 years, largely because of soaring energy costs, the US Labour Department reported yesterday. The Consumer Price Index (CPI), the most broadly used gauge of inflation, rose 4.1 per cent […]
US recession fears send Asian markets into a tailspin
STI, Hang Seng suffer big drops; bank and tech stocks, energy and base metal prices also hit STOCK markets across Asia plummeted yesterday amid fears that a gathering financial storm in the United States might tip the global economy into a recession. Hong Kong was the worst hit as the Hang Seng Index plunged an […]
MARKET TUMBLE: Bank stocks hit by US recession, sub-prime fears
Sell-off symptomatic of broader sell-down, slowing in S’pore’s economy: analysts BANK stocks were clobbered yesterday on continuing concerns of a possible recession in the United States, subprime lending woes and a general slowing down of the Singapore economy. This comes on the back of the news that Citigroup reported its biggest loss in its 196-year […]
HK’s Far East to spin off hotels into US$513m Reit
It’ll own up to 75% of the trust and expects HK$1.22b gain from the move (HONG KONG) Far East Consortium International Ltd plans to spin off its hotels into a property trust worth at least US$513 million to raise funds to repay loans and start new property projects. The planned initial public offer (IPO), announced […]
Transitional office site fetches just one bid
Mezzo’s $7.8m offer for Aljunied site also below expectations INTRODUCED as a quick fix to address the shortage of office space, the new transitional office sites may just as quickly become redundant. The Urban Redevelopment Authority (URA) closed the tender for the fourth transitional office site at Aljunied Road and Geylang East Avenue 1 yesterday […]
Las Vegas Sands draws down $2b for S’pore IR
LAS Vegas Sands Corp, the world’s largest casino operator by market value, has drawn down $2 billion from its credit facility for the building of a Singapore casino, it said in a statement yesterday. The company is paying an interest margin of 3.6 percentage points more than the 30-day Singapore dollar swap offer rate, it […]
S’pore economists unfazed as US recession fears grow
They opt to wait for more data before revising growth forecasts FEARS of a United States recession are hitting a fever pitch with the dreaded ‘R’ word mentioned with increasing frequency by American policymakers and economic soothsayers. But the temperature in Singapore is notably lower. Local analysts are sitting tight on their forecasts – for […]
Oil drops to 3-week low on economic concerns
OIL prices slid below US$91 a barrel yesterday to the lowest level in more than three weeks. This came ahead of a slate of oil industry data that could show more signs of possible weakening demand and as the Organisation of Petroleum Exporting Countries repeated its pledge to lift output if needed. US light crude […]
2008 construction deals seen hitting record $27b
BCA forecast based on strong demand from private sector (SINGAPORE) The value of construction contracts awarded this year will reach $23-27 billion on the back of strong demand from the private sector, according to official estimates released yesterday. Last year, the total value of construction contracts awarded hit $24.5 billion – also mainly due to […]
Sleepy December takes the shine off sparkling year
Record 14,826 private home sales in 2007, but only 305 in its last month (SINGAPORE) A year that started with a bang ended with a whimper. Developers sold a record 14,826 private homes last year – a third more than the year before. But sales slowed to a trickle in December at only 305, or […]
CapitaLand, NUS sell Hitachi Tower
CAPITALAND has sold its 50 per cent stake in Hitachi Tower for $403.5 million, the property giant said yesterday. Upon the deal’s completion, CapitaLand will recognise a gain of $110.1 million, it said. The National University of Singapore, which owns the remaining 50 per cent of the Collyer Quay office building, also sold its stake. […]
Welcome them home at Keppel Bay on Saturday
A GRAND homecoming is planned for the Uniquely Singapore Clipper at Keppel’s new Marina at Keppel Bay on Saturday. The home boat crossed the finish line off Batam, Indonesia in seventh place around 1pm Singapore time yesterday. There are another two Clipper yachts which have yet to finish and they are expected in some time […]
GIC buys a slice of embattled Citigroup
The US$6.88b investment, with limited downside, makes it potentially one of the global bank’s largest shareholders (SINGAPORE) It’s two giant purchases in as many months. The Government of Singapore Investment Corp (GIC) is investing US$6.88 billion in Citigroup through a private offering of convertible preferred securities, it said yesterday. The downside is limited as the […]
Familiar strain of worry weighs heavy
SENIOR CORRESPONDENT THE pattern of trading over the past month or so has been the same and yesterday was no different – shortcovering lifted the index temporarily in the morning before renewed weakness and shorting resumed soon afterward. The cue for short-covering is usually either an overnight rebound on Wall Street, or a rise in […]
