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Fed chief warns vaccine not immediate cure to economic risks with Covid-19 resurgence

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3 minutes

WASHINGTON (BLOOMBERG) - Three of the world's top central bankers warned on Thursday (Nov 12) that the prospect of a Covid-19 vaccine isn't enough to put an end to the economic challenges created by the pandemic. "We do see the economy continuing on a solid path of recovery, but the main risk we see to that is clearly the further spread of the disease here in the United States," Federal Reserve Chair Jerome Powell said during a panel discussion at a virtual conference hosted by the European Central Bank. "With the virus now spreading, the next few months could be challenging." Mr Powell was joined on the panel by Bank of England Governor Andrew Bailey and ECB President Christine Lagarde. Both echoed his caution, and added to recent warnings from other central bankers against complacency. Mr Bailey called recent vaccine news "encouraging" and said he hoped it would reduce uncertainty but added "we're not there yet." Ms Lagarde said while it's now becoming possible to see past the pandemic, "I don't want to be exuberant." The words of warning come as much of the US and Europe is enveloped in a new wave of coronavirus outbreaks. In the US, hospitalizations are at record highs. In Euro...

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WeWork losses mount but ‘seismic shift’ in office use seen helping recovery

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3 minutes

NEW YORK (REUTERS) - WeWork Companies' revenue declined in the third quarter but its cash burn slowed, a company memo showed on Thursday (Nov 12), with management confident the shared-workplace provider can weather the hit to the office sector from Covid-19. Quarterly revenue slid 8 per cent from the second quarter to US$811 million (S$1.09 billion), while the company posted cash burn of US$517 million, less than US$671 million a quarter ago, WeWork said in a memo to employees seen by Reuters. WeWork also said it successfully exited 66 locations that were open or were to be opened and that it amended 150 lease arrangements that resulted in an estimated reduction of US$1.5 billion in long-term liabilities. WeWork said member retention improved and renewal rates stabilized with the loss of desks in September at its lowest level since March when Covid-19 shut down businesses around the world and left offices vacant. The pandemic has accelerated a "seismic shift" in the office sector that has put flexibility - an industry byword for the short-term leases the company embraces - and WeWork at the forefront, the memo signed by chief executive Sandeep Mathrani and chief financial officer B...

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Wall St ends sharply lower as pandemic fears resurge

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3 minutes

NEW YORK (REUTERS) - Wall Street ended sharply lower on Thursday ((Nov 12) as US coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine. New York became the latest state to introduce stricter social distancing rules on Wednesday, as new infections in the country surged above 100,000 for an eighth consecutive day. The blue-chip Dow was pulled down by industrial and financial companies sensitive to economic growth, with Boeing and Goldman Sachs each down more than 2 per cent. Airlines and cruise operators, among the hardest hit by the coronavirus pandemic, also fell. Even after Thursday's drop, the S&P 500 has gained almost 2 per cent this week, buoyed by positive vaccine trial data that increased expectations of a quick economic recovery. Stocks have also benefited from expectations that a divided Congress will keep President-elect Joe Biden from enacting tax hikes that would hurt corporate profits. "The reality is that we don't know what the new normal is going to look like, even when we do recover from the coronavirus, and that is still a ways away," said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta. ...

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S-E Asian stocks regain shine on optimism over travel

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3 minutes

HONG KONG • South-east Asian stocks, hit particularly hard by the shutdown of tourism and other service industries, are making a comeback as optimism grows over a return to travel. The MSCI Asean Index has surged 14 per cent in an eight-day winning streak, almost double the 7.4 per cent rally in the MSCI Asia-Pacific Index over the same period. At its highest since March, the gauge of South-east Asian shares has narrowed the gap with its peers but still remains down about 14 per cent for the year. The broader Asian gauge is up 8 per cent. Investors are jumping on South-east Asian stocks as part of a global rotation into value and out of growth sectors after positive results from a Pfizer vaccine boosted sentiment. Governments across the region are looking to ease social distancing measures, with Singapore and Hong Kong announcing on Wednesday that they will start an air travel bubble, replacing quarantine with Covid-19 testing from Nov 22. "The vaccine news opens up sectors under great stress like airlines and hotels," Mr Leon Goldfeld, head of multi-asset solutions for the Asia-Pacific at JPMorgan Asset Management, said in a press briefing. "What we've seen is a massive rotation i...

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Rising demand for ‘second-hand’ endowment, life insurance plans in Singapore

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1 minute

SINGAPORE - Even as more people seem to be surrendering endowment and life plans bought from insurance companies, there is a growing trade in such policies on the resale market. There are some 10 companies offering sellers 5 per cent to 20 per cent more than the surrender value that insurers would pay. 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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SembMarine expects losses to continue in Q4

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2 minutes

Sembcorp Marine (SembMarine) continued to incur losses for its fiscal third quarter ending Sept 30, with low overall business volume and execution delays, it said yesterday in a business update. SembMarine "expects losses to continue into the fourth quarter", the group added in the exchange filing. It did not provide details on the level of losses incurred in the third quarter or expected for the fourth quarter. In July, SembMarine had reported a net loss of $192.1 million for the first half of this year. In its business update, SembMarine said its Singapore yards began to resume production activities in early July, following the relaxation of Covid-19 measures. Its operating yard workforce, including sub-contractors, has since increased to almost full workforce levels. It added: "With oil prices recovering since the March collapse, there have been active reviews of deferred projects by the oil companies. "New orders visibility has improved as a result, and the group is increasingly active in bidding for new projects and discussing resumption of delayed projects." The group is actively tendering for more than 10 projects, especially in the greener energy market segments such as ren...

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How construction firms can build a sustainable future post-Covid-19

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5 minutes

The pace of construction activity is slowly picking up here, but it is far from business as usual. Firms continue to grapple with new Covid-19 infections and labour challenges as well as strains on costs, cash flow and profits. The knock-on effect has been a three-to six-month delay in construction timelines. The sector is expected to contract 23 per cent this year from last year, according to official forecasts in September, down from the June estimate of an 11.4 per cent decline. The Government has pumped in significant financial support. Around 1,500 construction firms have tapped these relief measures but these are temporary, so companies need to review and revise business models to be sustainable in the long term. RAMP UP USE OF TECHNOLOGY Companies are looking to technology to help comply with safe distancing rules. Three in five small businesses here, including those in construction, plan to invest in such technology, noted a study by United Overseas Bank (UOB), Dun & Bradstreet and Accenture. One initiative is the Building and Construction Authority's (BCA) Integrated Digital Delivery (IDD) implementation plan. Tiong Aik Construction, a longstanding UOB client, has used IDD...

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Chinese clampdown on fintech companies unlikely to affect Singapore firms: Experts

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1 minute

China's fintech clampdown will probably have a limited impact on Singapore, although it could encourage investors to pivot to the city-state and local fintech companies to expand their footprint in the region. Yesterday, China's top banking watchdog called for fintech firms to be subjected to the same supervision and risk management requirements as banks. It had laid out detailed regulations aimed at curbing anti-competitive behaviour for the first time on Tuesday. 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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China to further tighten reins on fintech companies

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1 minute

BEIJING • China's top banking watchdog doubled down on a renewed push to rein in financial technology companies such as Ant Group, promising to eliminate monopolistic practices and strengthen risk controls in the industry. The news sent Chinese technology shares tumbling for a second day, wiping out more than US$200 billion (S$270 billion) of value. 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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Ambani wages price war with Amazon for US$200 billion India prize

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6 minutes

MUMBAI (BLOOMBERG) - Billionaire Mukesh Ambani obliterated rivals in India's telecommunications sector by selling US$2 data plans and free voice calls. Four years later, he's deploying a very similar tactic - cutthroat pricing - to gain an edge in the country's increasingly competitive e-commerce space. As India this week hits the peak of its biggest shopping season, the festival of Diwali, the tycoon's retail websites - including JioMart - are elbowing their way into a space long dominated by Amazon.com and Walmart's local unit Flipkart Online Services. Ratcheting up competition, Mr Ambani's portals are offering blockbuster discounts of as much as 50 per cent on popular sugary confections and other holiday staples like spice mixes for India's rice delicacy, biryani. Meanwhile, his Reliance Digital website is selling some flagship Samsung smartphones at prices cheaper than rivals, with as much as 40 per cent rebates. It's a push that comes as Mr Ambani's sprawling conglomerate, Reliance Industries, is flush with cash. After raising an eye-popping US$20 billion (S$27 billion) for its technology venture, it's shifted fundraising to its retail arm, which has won over US$6 billion in i...

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Oil gains nearly 3% on vaccine hopes, even as nations reimpose lockdowns

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3 minutes

NEW YORK (REUTERS) - Oil ended nearly 3 per cent higher on Tuesday (Nov 10) as hopes that a Covid-19 vaccine is on the horizon outweighed worries about a drop in fuel demand from new lockdowns to contain the virus. Brent crude futures settled up US$1.21, or 2.9 per cent, at US$43.61 per barrel. US West Texas Intermediate (WTI) crude futures gained US$1.07, or 2.7 per cent, to US$41.36. Both contracts jumped 8 per cent on Monday, their biggest daily gains in more than five months, after drugmakers Pfizer and BioNTech said their experimental Covid-19 treatment was more than 90 per cent effective based on initial trial results. Oil bounced again on Tuesday afternoon after the director of the US National Institute of Allergy and Infectious Diseases, Anthony Fauci, said doses of the vaccine will be available for people at the highest priority in December. "This implies that at some point in next year, people may be able to go on vacation, which means we will see a greater demand for jet fuel," said Bob Yawger, director of energy futures at Mizuho. "For the energy complex this is the best thing since sliced bread," he added. Mass rollouts, however, are likely to be months away and subjec...

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US shares end mixed after coronavirus vaccine high fades

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3 minutes

NEW YORK (AFP) - Wall Street pulled back from the celebration that followed good news on a potential Covid-19 vaccine, ending Tuesday's (Nov 10) session mixed. The benchmark Dow Jones Industrial Average finished the day with a 0.9 per cent gain at 29,420.92, while the broader S&P 500 dipped 0.1 per cent to 3,545.53. But the tech-heavy Nasdaq lost 1.4 per cent to close at 11,553.86. Optimism about Monday's announcement from Pfizer and BioNTech that their vaccine was 90 percent effective was tempered by the realisation the economic gains likely will not be felt until late next year since it will take months for any vaccine to be widely distributed. Meanwhile, investors are shifting away from the stay-at-home stocks, like videoconference service Zoom, and are returning to back-to-normal shares like airlines and cruise companies. Quincy Krosby from Prudential Financial said "tech names were overbought, reaching the point where we would expect to see some consolidation." That trend should continue as focus turns to "sectors that will benefit from a vaccine once it is distributed and take us to the other side of the pandemic," Krosby said. Uncertainty generated by the US election has rec...

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99 Group acquires real estate portal SRX

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2 minutes

99 Group, which operates property portal 99.co, has acquired property platform and real estate data provider Singapore Real Estate Exchange (SRX) for an undisclosed sum. As part of the acquisition, 99 Group will acquire all the shares in StreetSine Singapore, a subsidiary of Singapore Press Holdings. 99 Group said yesterday that it will retain all SRX employees and integrate the team in the coming weeks. It expects the transaction to be completed by the second quarter of next year. The move will bring SRX under the same umbrella as other Singapore property platforms 99.co and iProperty.com.sg. 99 Group said this will create a widened pool of listings, information and data tools, enabling it to offer consumers and real estate professionals in Singapore better value and more competitive packages. 99 Group chief executive Darius Cheung noted that the industry needs to digitalise to meet evolving consumer needs. "Reliable property data is especially important as property hunting continues to shift online even though physical viewings are now allowed again, suggesting a lasting change in consumer behaviour," he said. SRX chief executive Jason Barakat-Brown said: "Our businesses and team...

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Philippine economy signals shaky recovery from Covid-19

elean
3 minutes

MANILA • The Philippines' economic contraction moderated in the third quarter by less than forecast, signalling an unsteady recovery from the pandemic even as movement restrictions were relaxed and businesses reopened. Gross domestic product shrank 11.5 per cent in the three months through September from a year earlier, an improvement from the second quarter's revised 16.9 per cent drop. The median forecast in a Bloomberg survey was for a 9.6 per cent decline. Compared with the previous quarter, the economy expanded 8 per cent, below the median estimate of 8.9 per cent among seven economists surveyed, yesterday's data showed. The first sequential growth this year shows the economy is on the mend heading into next year, Acting Economic Planning Secretary Karl Chua said. "The economic team is optimistic that the worst is over for the country," said Mr Chua, adding that officials would reassess their economic projections in the light of the data. "The path is clearer to a stronger bounceback in 2021." The peso fell 0.2 per cent to 48.25 per US dollar as of 11.08am in Manila. The country's stock benchmark rose over 3 per cent, joining a rally in Asia on vaccine optimism. The quarter-on...

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Trafigura said to hire Temasek’s Khodor Mattar in expansion push

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2 minutes

AMSTERDAM (BLOOMBERG) -Commodities trader Trafigura Group is hiring Temasek Holdings executive Khodor Mattar, as it seeks to team up with the world's biggest private equity firms and sovereign funds for investments, people familiar with the matter said. Mr Mattar is joining Trafigura in a newly-created position as head of capital development, the people said, asking not to be identified because the information is private. He's currently a managing director for the Americas at Temasek, the Singapore state-owned investment firm. In his new role, Mr Mattar will develop debt and equity partnerships with top alternative capital providers, the people said. Trafigura aims to team up with these funds for investments that will help it expand across petroleum products, metals and minerals and renewables, the people said. Mr Mattar plans to move from New York to Geneva in 2021, according to the people. Representatives for Trafigura and Temasek declined to comment. The move shows the efforts by large commodities traders to find alternative financing methods at a time when conventional lenders are getting more conservative in extending their balance sheets. ABN Amro Bank said in August it would...

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Jack Ma’s botched Ant IPO becomes a boost for China’s state-run banks

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4 minutes

BEIJING (BLOOMBERG) - China Merchants Bank and other state-backed lenders have emerged as the biggest winners from new regulations that derailed Ant Group's massive stock listing, as China aims to level the playing field between fintech giants and traditional banks. Merchants Bank, known as the retail bank king in China, soared 16 per cent in Hong Kong this month, its biggest six-day advance in more than five years. Other Chinese lenders gained, including Agricultural Bank of China, while Alibaba Group Holding, an affiliate and one-third shareholder of Ant, lost 1 per cent. Chinese banks, trading near record low valuations, rallied after financial regulators last week proposed new rules to curb the rapid growth and leverage at the nation's more than 200 micro-loan lenders, putting a surprise halt to Ant's US$37 billion (S$49.9 billion) initial public offering. Ant and other fintech giants such as Tencent Holdings, using big data and cloud computing, have grabbed market share from commercial banks in the lucrative consumer lending space by providing easier access to credit for younger users online, many of whom have little income nor credit history. "The regulations move the dial ba...

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Oil soars 8% on promising Covid-19 vaccine results

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2 minutes

NEW YORK (REUTERS) - Oil surged about 8 per cent on Monday (Nov 9), putting it on track for its biggest daily gain in more than six months after Pfizer announced promising results for its Covid-19 vaccine, boosting risk assets around the globe. Brent crude was up US$3.11, or 7.9 per cent, at US$42.56 a barrel at 1:35pm EDT (1835 GMT), while US West Texas Intermediate crude rose US$3.31, or 8.9 per cent, to US$40.45. Both contracts rose more than US$4 earlier in the session and traded more than 120 per cent of last session's volumes. "The oil complex is joining in the bullish euphoria of today's optimistic vaccine headlines as well as the weekend election results by trailing the equities higher," said Jim Ritterbusch of Ritterbusch and Associates in Houston. Pfizer said its experimental vaccine was more than 90 per cent effective in preventing Covid-19, based on initial data from a large study, a victory in the battle against a pandemic that has forced lockdowns around the world and led to a drop-off in fuel demand. Wall Street, which oil prices often follow, reached all-time highs after the announcement. Meanwhile, Saudi Arabia said an Opec+ oil output deal could be adjusted to bal...

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Engineer retrained to take on new role in company

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1 minute

Traditionally, career paths within a company progress along the lines of one's area of expertise. But with change becoming a norm in many industries, it is not unusual for employees to switch jobs within the same company. 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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STI up 1.19% as Asian equities rally after Biden’s election win

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2 minutes

Singapore stocks rallied yesterday following news that Democrat challenger Joe Biden was declared president of the United States at the weekend, easing the uncertainty over the outcome of the election. Asian markets elsewhere continued to register gains from last week, with key benchmarks for Tokyo, Hong Kong, Seoul, Jakarta, and Kuala Lumpur all ending higher. State Street Global Markets' senior multi-asset strategist Daniel Gerard said Mr Biden's win "has been embraced by markets as it provides a narrative of desire for reconciliation, diplomacy and more international cooperation". "Asia, particularly emerging markets Asia, will be a strong beneficiary of the current environment, due to its relatively better handling of the pandemic, its exposure to technology and recovering consumer and global trade story," he said. However, near-term risks, including renewed geopolitical tensions and a resurgent pandemic, could threaten to reverse gains in global trades, he added. The local blue-chip benchmark Straits Times Index (STI) ended yesterday up 1.19 per cent to 2,609.36. Gainers outpaced losers 319 to 166, with 1.74 billion securities worth $1.24 billion changing hands. The best perfo...

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Asia shares, US stock futures rise on Biden victory

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3 minutes

SYDNEY (BLOOMBERG, REUTERS) - Asia shares and US stock futures climbed on Monday (Nov 9) and the US dollar extended last week’s decline, with markets continuing to show a pattern favorable for risk-taking in the wake of President-elect Joe Biden’s assumed victory. S&P 500 futures were up 1 per cent in early trading, building on the strongest week since April for the US equities gauge, as Biden prepared to launch his transition effort on Monday. Japan's Nikkei index rose 1.2 per cent, Australia's S&P/ASX 200 Index surged 1.5 per cent while South Korea's Kospi index opened up 0.9 per cent. Biden, in his victory speech over the weekend, promised swift action against the pandemic and an orderly transfer of power following the election. By being declared winner in Pennsylvania, Biden passed the threshold of 270 Electoral College votes needed to capture the presidency and media networks at the weekend declared him victorious. President Donald Trump is weighing legal challenges and has so far refused to concede. "The most likely outcome is that Democrats will retain control of the House with Republicans retaining the Senate. This is likely to mean Biden's proposed tax hikes won't pass the...