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Bottlenecks take toll on container shipping trade

LONDON • Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days. Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics to medical equipment. Just 50.1 per cent of container vessels arrived on time last month, down from 80 per cent a year earlier, and the lowest level in records dating back to 2011, according to a service reliability index compiled by Copenhagen-based Sea-Intelligence, an analysis and data provider. Delays can add costs, induce operational headaches and restrain revenue for the shippers of cargo - companies like Costco Wholesale. The Issaquah, Washington-based chain of 803 warehouse-size stores on four continents expects the situation involving container shortages and late deliveries to persist for a few more months. "There are instances of 50 per cent or 100 per cent or even more sale increases of an item, and if we could procure more, we'd have even higher sales," Mr Richard Galanti, Costco's chief financial ...

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Company Briefs Xiaomi

Xiaomi Smartphone maker Xiaomi's market value has exceeded the US$100 billion (S$133 billion) mark, a figure the firm fell far short of when it listed two years ago. The shares rallied as much as 9.1 per cent yesterday to a new high in Hong Kong, making it the 13th stock in the Hang Seng Index with a market capitalisation above US$100 billion. It ended the day 7.6 per cent higher, with a market value of HK$802 billion (S$138 billion). BLOOMBERG Allianz Allianz's real estate unit will take a majority stake in a portfolio of buildings owned by British Land in London's virus-roiled West End district. The insurance giant is paying £401 million (S$718 million) for a 75 per cent interest in the properties in Marylebone. The deal is due to complete next month. It is the latest sign of global investors willing to bet on the long-term resilience of the world's biggest business districts even as the coronavirus pandemic has reduced their appeal. BLOOMBERG Airbus Airbus said it stands to lose over US$5 billion (S$6.7 billion) worth of orders if AirAsia X's debt restructuring scheme goes through, court documents showed. It joins over a dozen creditors that have challenged the Malaysian low-bud...

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Google, Facebook, coordinated antitrust response: Report

WASHINGTON (AFP) - Google and Facebook worked together to help fend off an antitrust investigation into the two tech giants which dominate digital advertising, according to a media report citing a draft of a state lawsuit. The Wall Street Journal, which cited a draft version of the complaint filed by 10 US states without redactions in the public version, said Tuesday (Dec 22) the two firms agreed to "cooperate and assist each other" in responding to an antitrust probe. The case filed last week was among three separate actions filed by state and federal antitrust enforcers against Google. A separate case has been filed against Facebook over its acquisition of two rival messaging applications. Facebook dismissed the allegations, saying agreements between the two firms were not aimed at harming competition but offered choices and benefits for advertisers and publishers. "Any allegation that this harms competition or any suggestion of misconduct on the part of Facebook is baseless," a Facebook spokesperson said. Google did not immediately respond to an AFP query. But the Journal quoted the tech firm as saying there was nothing improper or exclusive about its arrangement with Facebook. ...

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Wall Street ends mostly lower despite new stimulus plan

NEW YORK (AFP) - Worrisome US economic data and concerns over a new coronavirus variant in Britain hit Wall Street and led US equities to close mostly lower on Tuesday (Dec 22). The retreat came amid choppy trading in a holiday-shortened week and despite the overwhelming approval in Congress of a new US$900 billion (S$1.2 billion) relief package that includes another round of direct stimulus cheques, extra unemployment benefits and airline worker payment support. But the spike in US Covid-19 infections in recent weeks undermined consumer confidence, which fell for the second straight month, while existing home sales fell for the first time in six months. And investors also focused on Britain, where a fast-spreading new strain of Covid-19 has prompted some 40 countries to ban travel to Britain. The benchmark Dow Jones Industrial Average lost 0.7 per cent to finish at 30,015.51, while the broad-based S&P 500 slipped 0.2 per cent to 3,687.26. However, the tech-rich Nasdaq Composite Index bucked the trend, gaining 0.5 per cent to end at 12,807.92, a new record. "Worry over the impacts of the virus and the subsequent new restrictions are tamping down some of the early enthusiasm that ca...

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Wary mood over global virus curbs sends STI down 0.67%

Investors turned defensive yesterday as the pandemic sparked more lockdowns and tighter border restrictions across the world. The wary mood left the Straits Times Index (STI) down 0.67 per cent, or 19.2 points, at 2,827.32 yesterday. Across the broader market, losers outnumbered gainers 277 to 178, on trade of 1.64 billion securities worth $1.32 billion. The coronavirus resurgence in countries including Britain and Australia saw mixed results on the Singapore market. Glovemaker counters including Riverstone, Top Glove and UG Healthcare ticked up, with UG Healthcare registering the biggest gain - up 9.65 per cent to 62.5 cents. Riverstone closed 6.25 per cent higher at $1.19, while Top Glove gained 0.92 per cent to $2.20. In contrast, aviation-related counters like Singapore Airlines (SIA), ground handler and in-flight caterer Sats, and SIA Engineering were hit by the global flare-up. SIA fell 3.43 per cent to $4.23, Sats declined 3.19 per cent to $3.94 and SIA Engineering fell 3.48 per cent to $1.94. SIA earlier announced it had used $7.1 billion, or about 80 per cent, of the $8.8 billion raised in the dilutive rights issue this year, as it burns through hundreds of millions of dol...

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Tech giant Sea makes big strides as it takes on digital banking

SINGAPORE - Singapore-based technology giant Sea, which owns e-commerce platform Shopee, has rapidly grown to become South-east Asia's most valuable company and one of the region's largest tech players over the past year. Group chief executive and founder Forrest Li was named Businessman of the Year at the Singapore Business Awards last month - testament to the plucky firm's transformation since its scrappy start in 2009. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Oil tumbles as new virus strain revives demand fears

LONDON • Oil prices dropped almost 2 per cent yesterday to below US$50 a barrel, adding to losses from the previous session, as a new coronavirus strain in the United Kingdom revived concerns over demand recovery. The detection of the new strain prompted several countries to close their borders to Britain, although a British minister said the UK and France are working to reopen one of Europe's most important trade routes. Brent crude was down 72 US cents, or 1.4 per cent to US$50.19 a barrel at 0915 GMT (5.15pm Singapore time), while US West Texas Intermediate (WTI) crude fell 76 US cents, or 1.6 per cent, to US$47.21. Both benchmarks slid nearly 3 per cent on Monday, partly erasing recent gains driven by the roll-out of Covid-19 vaccines seen as key to allowing a return to normal life. "In the battle between immediate negative concerns and future optimism, the former is now fighting back," said Mr Tamas Varga of oil broker PVM. The latest rally culminated in Brent hitting US$52.48, its highest since March, on Friday. Some see potential for prices to fall further. Mr Jeffrey Halley of brokerage Oanda said: "The environment remains decidedly risk-averse. Given the scale of oil's two...

S&P 500 ends lower on new Covid strain, losses pared by stimulus

NEW YORK (REUTERS) - The S&P 500 closed lower on Monday (Dec 21), having clawed its way back from steep losses early in the session as investors juggled the outbreak of an ominous new strain of Covid-19 with the passage of a long-anticipated stimulus package. The Nasdaq joined the S&P 500 in the red, but financials helped the blue-chip Dow reverse course for a modest gain. "The 'Santa rally' will have to wait," said David Carter, chief investment officer at Lenox Wealth Advisors in New York."Troubling news about Covid in the UK has reminded markets that Covid isn't solved yet; the road ahead may be bumpy and uncertain." Congress hammered out a pandemic relief agreement on Sunday after months of partisan wrangling. The US$900 billion (S$1.19 trillion) package, expected to pass on Monday, includes unemployment aid, small business relief, and vaccine distribution, but the dollar amount fell short of what many had hoped for. "Fiscal stimulus plan appears big enough to hold off a recession, but not for long," Carter added. "But while it's not as large as many market participants hoped, it does include many meaningful actions that can support markets." But the emergence of new, highly in...

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E-shopping addiction lays waste to green packaging drive in China

SHANGHAI • If you worry about all the waste generated by the annual rush of holiday shopping and gift giving, it is nothing compared with the mountains of discarded packaging that comes from a single event in China. On Nov 11 each year, the world's biggest consumer market goes into overdrive as e-commerce giants like Alibaba Group Holding and JD.com lure shoppers with huge bargains during the Singles' Day sale. Alibaba reported almost 500 billion yuan (S$102 billion) in sales this year, nearly four times the United States' Black Friday and Cyber Monday spending combined. On its Tmall platform, transactions reached a peak when 583,000 orders were made in a single second. All those purchases meant 675 million packages had to be delivered, a 26 per cent increase from last year. Online shopping in China generated 9.4 million tonnes of packaging in 2018, according to Greenpeace, which projects that the amount could rise to 41 million tonnes by 2025, about the same as all the waste produced by Japan in a year. Greenpeace estimates that Singles' Day generated 52,400 tonnes of carbon dioxide from manufacturing, packaging and shipping in 2017. The national railway has to employ hundreds of ...

SIA has spent $7.1b of $8.8b raised in rights issue

Singapore Airlines (SIA) has used approximately $7.1 billion of the $8.8 billion raised from a rights issue in June, it said in a filing to the Singapore Exchange yesterday. Between Oct 14 and Dec 13, the flag carrier spent a further $900 million of the gross proceeds from the rights issue. Of this amount, $500 million was used to fund ongoing operating expenses, $200 million went towards refunding tickets sold on flights that have been cancelled in view of continuing border controls and travel restrictions, and $200 million was applied towards debt servicing. Its last update on the use of proceeds from the rights issue was in mid-October, when SIA said it had spent $1.8 billion over about two months. The amount was used for ongoing operating expenses, ticket refunds and debt servicing. In addition to the funds raised during the rights issue, SIA said it has raised for FY2020/21 a total of $2.1 billion through loans secured on its aircraft and a short-term unsecured loan, $850 million through a convertible bond issue, and $500 million via a private placement of new 10-year bonds. It has access to about $2.1 billion of lines of credit available for drawing, and has the option to iss...

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Gold climbs to six-week high on US stimulus news

BENGALURU • Gold climbed to a six-week high yesterday, driven by news that United States congressional leaders had reached an agreement on a Covid-19 aid package, while lockdowns in Britain soured appetite for riskier assets and added to the metal's support. Spot gold rose 0.9 per cent to US$1,896.56 an ounce by 0745 GMT, having earlier hit its highest since Nov 9 at US$1,906.46. US gold futures gained 0.8 per cent to US$1,904.20. The US$900 billion (S$1.2 trillion) stimulus deal reached on Sunday comes as the pandemic accelerates, infecting more than 214,000 people in the US each day. "Now that we've got fiscal stimulus behind us, gold has enough momentum to close above US$1,900 by year end and it could climb up to US$1,925," said Axi chief global market strategist Stephen Innes, adding that dovish central bank policies signalled last week were also supportive. The Fed last week vowed to keep funnelling cash into financial markets and keep rates low until a US economic recovery is secure. Aiding gold, Asian stocks slipped as Britain's Health Minister suggested tighter curbs in London and south-east England might stay for some time to counter a new coronavirus strain. Gold has once...

Oil price falls on fears of Covid-19 mutation

NEW YORK • Oil fell to less than US$48 a barrel in Asian trading - after posting a seventh weekly gain - on concern a Covid-19 mutation discovered in Britain could speed the virus' transmission and lead to more lockdowns. Futures in New York dropped nearly 3 per cent after closing at the highest level in almost 10 months last Friday. Over 16 million Britons are now required to stay at home as a full lockdown came into force in London and the south-east of England, with some European countries limiting travel with Britain. A stronger dollar also reduced the appeal of commodities that are priced in the currency, while a stimulus deal in the United States could not stem the slide. Physical oil prices are also falling as Asian refiners ease purchases after an earlier-than-usual buying spree. Abu Dhabi's Murban crude was sold last week on the spot market below its official selling price for the first time since August, while differentials for Russia's Espo have fallen from a six-month high. Crude has rallied around 33 per cent since the end of October on a series of vaccine breakthroughs that have created expectations for a recovery in energy demand next year. In the short term, however...

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Green loans gaining traction among firms

SINGAPORE - Green loans are gaining traction among companies here amid heightened awareness of sustainability-related issues and the wider availability of financial products. Banks said they have received more queries from firms after launching frameworks to help businesses get loans that can finance projects with an environmental and social impact. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Cool to be green

Green loans are gaining traction among companies here amid heightened awareness of sustainability-related issues and the wider availability of financial products. Banks said they have received more queries from firms after launching frameworks to help businesses get loans that can finance projects with an environmental and social impact. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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How Covid-19 pushed the property market to adapt

During the worst phase of the pandemic, many people wondered if the property market would come to a screeching halt and result in the greatest fall in prices since the turn of the millennium. However, the market proved to be quite resilient. And this did not come by sheer luck. First, government intervention through stimulus packages and jobs protection aid insulated Singaporeans from the full brunt of the economic slowdown and minimised the number of people affected by retrenchments or business closures. It was reported that around 150,000 jobs will be saved over these two years, with more than half of them by the Jobs Support Scheme. Second, the loan repayment moratorium helped to cushion the shock of job losses and these measures collectively helped prevent the widespread distress sale of homes. Statistics have shown that residential properties make up a large chunk of the Singaporean household balance sheet, with the other components being investments in financial products, insurance and savings. That developers received an extension to project completion times alleviated some of their stress. As a result, the market did not experience mass reduction of prices just to move unit...

All aboard the billionaires’ bitcoin bandwagon

NEW YORK • Now that bitcoin has topped US$20,000 for the first time, should you shift your hard-earned cash into digital currencies? History suggests caution should be your watchword, no matter how strong the fear of missing out may be. News last week that One River Asset Management has set up a fund company that will have about US$1 billion in bitcoin and fellow digital coin ether by early next year suggests that institutional investors are starting to take cryptocurrencies more seriously. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Tech stars quit Silicon Valley in political, pandemic shift

SAN FRANCISCO • Silicon Valley is seeing departures of some of its high-profile stars as a pandemic-linked shift to remote work and political polarisation have dulled the allure of the key tech industry hub. Nightmarish traffic and high living costs were already causing disenchantment even before the pandemic spoilt the serendipity of the northern California destination for top talent. Droughts and rampant wildfires have also taken a toll. Those leading the exodus include Tesla chief Elon Musk and Oracle co-founder Larry Ellison, along with Palantir co-founder Peter Thiel and the data analytics firm's chief executive Alex Karp. Some companies are also packing up and moving their headquarters, including Silicon Valley stalwarts Oracle and Hewlett Packard Enterprise (HPE), both headed for Texas. Founded in 1977 in Silicon Valley, Oracle said this month it was moving to position the company "for growth and provide our personnel with more flexibility about where and how they work". HPE, a spin-off of the historic Silicon Valley firm Hewlett-Packard, said it was moving to Houston "to meet customers where they are in their digital transformations in these extraordinary times". "There was...

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A go-global investment strategy for a global age

While the pandemic has kept us all cooped up in Singapore with little prospect of travel, investment expert David Mok says that advances in technology mean it has never been easier for investors to go global. As he tells his clients, a click of the mouse can open investment doors across the world, vastly expanding the horizons for people looking for new money-making opportunities. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Getting career coaching online via song and dance

Financial analyst Terence Cheng was considering his next steps two years into his first job in an accounting firm. So, he did what any millennial would do - look online. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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askST: What are the most recession-proof qualifications for an undergraduate?

A: With the Covid-19 pandemic upending industries and the job market, it is natural to wonder if there is a safe route your child can take to join the workforce after graduation. As your daughter will graduate three or four years from now, it is hard to say with certainty what skills and knowledge will be in demand then. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.