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Asia’s fragile aviation recovery snuffed out by resurgent Covid-19 cases

elean
4 minutes

SINGAPORE (BLOOMBERG) - A fragile recovery in Asian aviation is being snuffed out by a resurgence of Covid-19 cases in the region, pushing back forecasts for when air travel will get back to pre-virus levels and weighing on jet fuel margins. Chinese seat capacity on domestic and international flights has fallen more than 20 per cent from the end of September, when it almost got back to January 2020 levels, according to OAG Aviation, a flight data and analytics provider. People are being encouraged not to travel over the Lunar New Year period, which runs through early March, suggesting capacity may not rise until late this quarter. The rapid rebound in Chinese aviation had been a rare bright spot for jet fuel, which has taken the biggest hit among oil products from the pandemic. The drop in flights is more bad news for Asian refiners that are also struggling with weakening demand for other transport fuels. It's been offset, however, by increased consumption of kerosene due to a colder-than-normal winter. "The depth of the latest Covid-19 spike, its impact on aviation and subsequent consumer demand suggests that the hoped for recovery toward the back end of 2021 may not be as strong ...

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Goldman, Citi, Nomura see 20% earnings growth for Asia stocks in 2021

elean
2 minutes

HONG KONG (BLOOMBERG) - While Asia's equity rally may be ending the year looking a tad stretched, a bright earnings outlook for 2021 is giving strategists all the more reason to stay upbeat. No less a trio than Citigroup, Goldman Sachs Group and Nomura Holdings have penciled in earnings growth of more than 20 per cent for Asian shares next year. Citi and Nomura are joined by Societe Generale in expectations for between a 5 per cent and 7 per cent rise in the MSCI Asia ex-Japan Index, while Goldman sees a 9 per cent jump in the Asia Pacific equivalent in 2021. "We remain optimistic about 2021 prospects driven by the macro and earnings recovery and would be buyers of any market pullbacks," a team of Goldman strategists including Timothy Moe wrote in a note published on Sunday. Asian stocks are finishing an unprecedented year in strong fashion with the MSCI Asia ex-Japan erasing its pandemic-related losses in the summer and surging to a 18 per cent year-to-date rise through Monday (Dec 14). Benchmarks in technology-heavy South Korea and Taiwan have led the way. For next year, the prospects for profit growth looks strongest in South Korea, Citi analysts including Robert Buckland wrote ...

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S’pore economy turns corner on long road to recovery

elean
3 minutes

Singapore's economy has turned a corner and will rebound next year, though the recovery is expected to be gradual. It is still poised to grow by the fastest pace in a decade, helped by a low base, the Ministry of Trade and Industry (MTI) said yesterday. In its maiden forecast for next year, MTI said the economy may expand by 4 per cent to 6 per cent - the most since 2011, when it grew by 6.3 per cent. However, gross domestic product (GDP) will probably not return to pre-Covid-19 levels until the end of next year, it said while presenting the Economic Survey of Singapore. Trade and Industry Minister Chan Chun Sing said that while the growth outlook may have improved, there was still much work to be done. "While we are turning the corner, we still have a long way to go in our economic recovery," he said. Meanwhile, some of the gloom brought on by the pandemic is being dispelled. There were signs that the continued expansion of trade and manufacturing, and a gradual recovery in construction-and tourism-related sectors, would spur the rebound. For this year, the economy will contract by 6.5 per cent to 6 per cent - less than the previous estimate of a 7 per cent to 5 per cent shrinkage...

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Sustainability should be put at the core of post-pandemic recovery plans: Grace Fu

aseanpr
3 minutes

SINGAPORE - As Singapore revives its pandemic-hit economy, sustainability and the fight against climate change must be a fundamental driver in post Covid-19 recovery plans, said Minister for Sustainability and the Environment Grace Fu on Wednesday (Nov 4). "We are at a significant juncture, where we have the opportunity to put sustainability at the core of our recovery plans and policies, and change the way we produce and consume," the minister added. She said the country should continue strengthening its resilience against future shocks, including the "existential challenge" of climate change, supply chain disruptions and other public health threats. Ms Fu was delivering her keynote address at the Singapore Dialogue on Sustainable World Resources, organised by the Singapore Institute of International Affairs. Even as Singapore works hard to "build back better" in the face of an expected economic contraction of five to seven per cent this year, Ms Fu outlined how this can be done in a sustainable and inclusive manner. This includes driving climate action, catalysing innovation, and persisting with zero waste goals. She cited how Singapore submitted its enhanced plan for emissions r...