About 60 percent of the rich Chinese people, each of whom has a net asset of at least 60 million yuan (S$12.12 million), said they intended to migrate from China, a report has found. About 14 per cent of them have either already migrated from China or have applied for migration. The three most favoured […]
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Behind latest Fed rate cut, inflation fears loom
The Straits Times – March 20, 2008 WASHINGTON – THE United States central bank cut interest rates by three-quarters of a percentage point to 2.25 per cent, less than widely expected but more than what some of its policymakers were comfortable with. Two of the 10 voting members of the Federal Open Market Committee opposed […]
Wild swing reflects fears of US slowdown
Business Times – 12 Mar 2008 SHORT-COVERING and a late afternoon rebound on Nasdaq futures saw the Singapore market’s benchmark index chalking a remarkable 80-point turnaround in intra-day trading, first plunging to a new 16-month low, then rebounding to close in positive territory. Also boosting the market are expectations that the Federal Reserve may intervene […]
US employers cut 63,000 jobs in February
Payroll data indicate that probability of recession is more than 50 per cent (WASHINGTON) US employers cut payrolls for a second straight month during February, slashing 63,000 jobs for the biggest monthly decline in nearly five years as the nation’s labour markets weakened steadily, a government report yesterday showed. The Labor Department said that last […]
US household wealth falls for first time in five years
WASHINGTON – HOUSEHOLD wealth in the United States fell in the fourth quarter for the first time in five years, while borrowing slowed as home values plunged and lenders restricted credit, Federal Reserve figures have shown. Net worth for households decreased by US$532.9 billion (S$739.5 billion) from the previous three months, the first decline since […]
US reports surprise loss of 63,000 jobs
Biggest drop in five years another sign that economy is on the decline WASHINGTON – THE United States unexpectedly lost jobs last month for the second consecutive month, adding to evidence that the economy is in a recession. Payrolls fell by 63,000, the most in five years, after a revised decline of 22,000 in January, […]
Growth slows in 8 of 12 regions in US: survey
Beige Book cites weak retail sales, slow manufacturing and housing woes (NEW YORK) The Federal Reserve says economic growth has slowed in eight of 12 US regions since the start of the year, hurt by faltering retail sales, manufacturing and a continued decline in housing. ‘Two-thirds of the districts cited softening or weakening in the […]
Big US banks poised to fall further, says investment guru
Fed ‘making same errors’ Japan made trying to bail out everyone in 1990s FINANCIAL guru Jim Rogers painted a doom-and-gloom picture of the United States economy yesterday and predicted that Singapore’s two investment companies would lose money on their recent investments in beleaguered banking giants. Singapore-based Mr Rogers said investing billions of dollars in banks […]
US regulators look for signs of credit crisis spreading
They are keeping a keen eye on credit card, home equity and building loans WASHINGTON – UNITED States regulators are watching credit card and commercial construction loans for signs that they may be the next trouble spots as strained financial markets constrain credit. The housing downturn, with its epicentre in the sub- prime mortgage market, […]
Time to plan for the recovery that’s lying around the corner
(NEW YORK) Say the economy has fallen into recession, as so many people on and off Wall Street think. Is it time to bail out of stocks? Selling may be the reflexive response by shareholders who have watched the value of their assets decline in step with economic indicators, but investment advisers contend that they […]
US economy already in recession: Buffett
He sees slowdown across the board; withdraws offer to guarantee bonds NEW YORK – BILLIONAIRE investor Warren Buffett said the United States economy is in a recession and that stocks are ‘not cheap’ despite recent declines. He also said he is no longer offering to guarantee US$800 billion (S$1.12 trillion) of municipal bonds backed by […]
Bernanke urges banks to forgive part of mortgages
ORLANDO – FEDERAL Reserve chairman Ben Bernanke, battling the worst United States housing recession in a quarter century, has urged lenders to forgive portions of mortgages for more borrowers whose home values have declined. ‘Efforts by both government and private sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,’ […]
Buffett retracts US$800b bond guarantee offer
Separately, he says US economy is in recession, stocks are not cheap (NEW YORK) Billionaire investor Warren Buffett said yesterday that the US economy is in recession and that stocks are not cheap, despite recent declines. Speaking on CNBC television, Mr Buffett also said that he is no longer offering to guarantee US$800 billion of […]
Sub-prime, debt still top US economic threat: poll
Inflation jitters a distant 3rd; terrorism fears down the list (WASHINGTON) The combined punch of sub-prime mortgage defaults and heavy debt remains the biggest risk to the health of the US economy, a panel of business economists said yesterday. ‘NABE members are increasingly concerned over the short-term risks associated with sub-prime mortgages and other forms […]
If the US goes into a recession…
How will a US slowdown or recession affect your organisation and industry, and the Singapore economy in general? What can businesses do in the event of a slowdown? THE US recession had already started since December 2007. I predict that the federal funds rate will drop to one per cent by September 2008. After that, […]
Bernanke doesn’t utter R-word but he means it
His replies confirm economy is in recession: analysts (NEW YORK) US Federal Reserve chairman Ben Bernanke didn’t utter the word, but analysts reading between the lines of his testimony to the US Congress this week say that he came as close as a central bank chief can to acknowledging the chances of recession. Since the […]
Bernanke’s signal for rate cut stokes fears of inflation
Investors worry that stagflation could hit the US but Fed chief rejects the notion WASHINGTON – UNITED States Federal Reserve chairman Ben Bernanke’s readiness to cut interest rates to avert a recession is stoking concerns that prices will get out of hand. ‘Mr Bernanke has really overweighted the economic risks relative to inflation,’ said Mr […]
Greenback sinks further, nears new low against euro
LOS ANGELES – IN THE Federal Reserve’s battle to keep the United States economy from a severe downturn, the beleaguered US dollar is getting walloped anew. That is going to worsen the sticker shock for Americans headed overseas or buying some of their favourite imported goods. But it also will underpin the current boom in […]
Orders for big-ticket US-made goods plunge 5.3% in Jan
(WASHINGTON) Signs of sluggish growth continue to beset the US economy with orders to US factories for big-ticket manufactured goods plunging in January by the largest amount in five months, even as Federal Reserve chairman Ben Bernanke sent a fresh signal that the central bank will again lower interest rates. The Commerce Department reported yesterday […]
Stimulus will leave US even more vulnerable, experts warn
Stimulus will leave US even more vulnerable, experts warn WASHINGTON – EVEN if Federal Reserve chairman Ben Bernanke, United States President George W. Bush and the US Congress win the battle to avert a recession in the US this year, they risk losing the war to strengthen the economy for the long term. US economic […]
Banking regulator sees more US mortgage defaults
WASHINGTON – Defaults are increasing among US homeowners with good, but not perfect, credit histories who obtained a non-traditional mortgage, a top US banking regulator said on Friday. More pain can be expected as both borrowers with poor credit, who hold sub-prime mortgages, and borrowers with good credit, who hold Alt-A mortgages, see their interest […]
US recession may be as deep as in the 1990s
Fed likely to remain aggressive about cutting rates as a result, says Merrill NEW YORK – THE United States is in a recession that could be much worse than what it faced in 2001, and closer to the sharper economic slump of the 1990s, investment bank Merrill Lynch has said. The bank also said the […]
US Fed to focus on growth with possible risk of inflation
Most other central banks put a single goal above all others: stable prices (WASHINGTON) A nightmare scenario of rising prices and falling growth emerged on Wednesday as the US government reported that consumer prices are surging even as the beleaguered housing sector remains stuck in its worst slump in a quarter century. The combination of […]
‘US has slipped into recession’
NEW YORK – THE United States economy is in a recession, albeit a mild one, as a weakening consumer sector has compounded ongoing problems in the housing and credit markets, according to UBS economists. ‘It’s not coming. It’s here,’ UBS said in a research report on Wednesday. The Federal Reserve on Wednesday sharply lowered its […]
LATEST US DATA: US inflation gathering steam
Core readings above market forecasts; more grim news on the property front (NEW YORK) US inflation accelerated in January in a worrying sign for the Federal Reserve’s campaign to bolster the flagging economy, while a separate report yesterday showed more troubling signs for the beleaguered housing market. Annual consumer price inflation increased to an unexpectedly […]
Rising costs, strapped consumers squeeze top US foodmakers
(CHICAGO) For more than a year, food makers and other consumer products companies have passed on much of the burden of rising commodity costs to consumers. In fact, companies like H J Heinz and Hormel Foods proved again with earnings forecasts and announcements on Friday that this was still the case early this year, fuelling […]
Investors looking for some clarity on the economy
WALL STREET INSIGHT Focus on consumer price report, results of retail giants AFTER somewhat of a comeback week for US stocks following the previous week’s heavy losses, investors will be forgiven if they feel as though they’ve got no idea what’s coming next. Indeed, the events of the past week alone would normally be enough […]
Signs of US stagflation will pass off, say economists
Weakening demand will eventually cool inflation, they say (WASHINGTON) A clutch of distressing US economic data on Friday rekindled fears of 1970s-style stagflation, but the current bout of slow growth and rising costs should be short-lived. While there is little hope of a quick reprieve for US consumers coping with petrol around US$3 per gallon […]
2008 not necessarily like 2007: UBS
(ZURICH) UBS AG does not expect 2008 to be a year like 2007, when the Swiss bank wrote down US $18 billion in bad credits and posted the first loss since its creation, its chief executive was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related to the US […]
IMPROVING OUTLOOK: UBS expects this year to be a better one
ZURICH – UBS does not expect this year to be like the last, when the Swiss bank wrote down US$18 billion (S$25.5 billion) in bad credits and posted the first loss since its creation, its chief executive officer (CEO) was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related […]
Asia won’t catch flu if US gets a cold, says MM Lee
With China and India propelling it, Asia won’t be ‘unduly disadvantaged’ by a recession in the US ASIA – propelled by the twin engines of China and India – will not be ‘unduly disadvantaged’ if a recession hits the United States, said Minister Mentor Lee Kuan Yew last night. ‘I believe this may be the […]
US on verge of recession: Greenspan
(SAN FRANCISCO) Former Federal Reserve chairman Alan Greenspan said the US economy is on the verge of its first recession in six years as falling home values hurt consumer spending. ‘We are clearly on the edge,’ Mr Greenspan told a group of energy-industry executives at the Cambridge Energy Research Associates’ 27th annual CERAWeek conference in […]
New trouble brewing as another debt market falters
Investors now refusing to buy US securities regarded not too long ago as safe as cash NEW YORK – SOME investors got a big jolt from Goldman Sachs this week: Goldman, the most celebrated bank on Wall Street, refused to let them withdraw money from investments they had considered as safe as cash. The investments […]
US economy: Paulson, Bernanke play it cool
WASHINGTON – THOUGH economic officials have to avoid hysteria so that they don’t cause panic, United States Treasury Secretary Hank Paulson and Federal Reserve chairman Ben Bernanke, testifying before the US Senate banking committee on Thursday, went so far the other way that they seemed bored. Mr Paulson could have been the secretary of ennui […]
US economic outlook has worsened: Bernanke
Fed chief signals that he is ready to lower key interest rate (WASHINGTON) Federal Reserve chairman Ben Bernanke told Congress yesterday that the United States’ economic outlook has deteriorated and signalled that the central bank is ready to keep on lowering a key interest rate – as needed – to shore things up. In prepared […]
Troubled banks want to transfer some mortgage risks to US govt
New proposal for delinquent borrowers to refinance into loans backed by state THE United States banking industry, struggling to contain the fallout from the mortgage debacle, is now proposing to move some of the risk for troubled housing loans to the government, The Wall Street Journal reported yesterday. One proposal, being urgently advanced by officials […]
Bernanke ‘upbeat’ US will avoid recession
He tells lawmakers the economy may pick up dramatically (WASHINGTON) US Federal Reserve chairman Ben Bernanke voiced optimism in a closed-door meeting with Republican lawmakers on Tuesday that the United States would avoid slipping into a recession, Senator Charles Grassley said. ‘He was very upbeat about our not going into recession,’ the Iowa Republican said […]
IEA’s demand forecast cut on US slowdown
(LONDON) The International Energy Agency, an adviser to 27 industrialised nations, cut its forecast for 2008 global oil demand because of the slowing US economy and said the underlying trend was ‘even weaker’. The agency reduced its forecast for demand this year by 200,000 barrels a day to 87.6 million barrels a day. That lowers […]
Survey of economists signals US recession
(NEW YORK) According to Wall Street’s forecasters, the recession of 2008 is now unavoidable. That is, if you read between the lines of their predictions. In a survey released on Tuesday by the Federal Reserve Bank of Philadelphia, forecasters said on average there was a 47 per cent chance that the economy would shrink in […]
Global tech outlook cut on US recession fears
(SAN FRANCISCO) Two leading technology research firms have cut global technology outlook for this year, citing the risk of a US recession. Forrester Research Inc said it now expects global technology purchases to grow 6 per cent in dollar terms this year, down from an earlier projection of 9 per cent. It expects US purchases […]
Credit crisis spreading far beyond sub-prime loans
Repayments on prime mortgages, credit cards and car loans also affected (NEW YORK) The credit crisis is no longer just a sub-prime mortgage problem. As US home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their house payments, car loans and credit cards at a […]
White House does not expect a recession
(WASHINGTON) The White House predicted on Monday that the economy would escape a recession and that unemployment would remain low this year, though it acknowledged that growth had already slowed. ‘I don’t think we are in a recession right now, and we are not forecasting a recession,’ said Edward Lazear, chairman of the White House […]
Write-downs from sub-prime problems could touch $568b
German minister sounds warning as officials await audits from banks THE bloodbath is not over yet. Sub-prime-related write- offs may hit US$400 billion (S$567.8 billion) – more than treble the US$130 billion losses that Wall Street banks and other financial institutions have revealed in recent weeks, according to the world’s top finance officials. Speaking on […]
Critical week for news of sub-prime damage: G-7
Leading banks to present first audited accounts since crisis IN TOKYO THIS week will be critical in revealing how much damage the credit crisis has done to the global financial system, according to a key official involved in last weekend’s meeting of Group of Seven (G-7) finance ministers in Tokyo. Leading banks will present the […]
Sub-prime probes focus on disclosure, valuation
(WASHINGTON) The Securities and Exchange Commission (SEC) is investigating how banks, creditrating firms and lenders valued and disclosed complex mortgage-backed securities that ultimately led to the sub-prime crisis, a top agency enforcer said on Saturday. ‘The big question is, who knew what when, and what did they disclose to the marketplace?’ said Cheryl Scarboro, an […]
Odds of US recession now at 50%: Blue Chip forecast
Outlook dampened by data showing a contraction in hiring, consumer spending (WASHINGTON) The odds of a US recession have increased and stand at nearly 50 per cent amid a spate of data showing a weakening labour market, signs of more credit tightening and turmoil in the financial markets, the latest Blue Chip economic forecast projects. […]
LATEST US DATA: ‘Painful’ and ‘drawn out’ recession likely: report
(NEW YORK) The US economy has entered a recession that will be more painful and drawn out than the usual downturn, the director of the Reuters/University of Michigan consumer sentiment survey said yesterday. Inflation pressures will linger despite the retrenchment in consumer spending, complicating the task of policy makers, the University’s Richard Curtin said in […]
Americans in for worst recession in 20 years?
Recent job and other data show an economic downturn may last longer, too (WASHINGTON) The chances of the United States avoiding a recession appear to be growing dimmer by the day, and any contraction in the economy will likely last longer and be more severe than other downturns in the past 20 years. Recent reports […]
US productivity growth seen slowing in Q4
Economists expect data to show a rise of just 0.5% (NEW YORK) US worker efficiency probably grew in the fourth quarter at the slowest pace in more than a year, pushing up labour costs, economists said before a government report yesterday. Productivity, a measure of how much an employee produces for each hour of work, […]
Slump in services sector signals arrival of US recession
Shockingly weak services data could be final proof of economy shrinking ANY hope that the United States economy might escape a recession has now all but disappeared, say analysts. The last straw came when the country’s huge services sector – covering industries such as banking, retail and construction – shrank last month for the first […]
