Cryptocurrencies,Time and Freedom.: August 2015

Monday, August 31, 2015

China new home prices in first annual rise for 11 months: survey

SEP 1, 201511:48 AM

[BEIJING] New house prices in China rose in August from a year ago for the first time in 11 months, a survey showed Tuesday, as government monetary easing policies boosted demand.

The average cost of a new home in the country's 100 major cities rose 0.15 per cent year-on-year to 10,787 yuan (S$2,655) per square metre last month, snapping 10 straight months of decline, the China Index Academy (CIA) said in a report.

On a month-on-month basis, new home prices increased 0.95 per cent, accelerating from a rise of 0.54 per cent in July and the fourth consecutive month of rising prices, according to CIA.

Prices fell for eight months in a row to December last year.

"The property market continued to recover on the back of a series of loosening policy this year," CIA said in the statement.

The central People's Bank of China (PBoC) has cut benchmark interest rates five times since November, the latest last week, in a bid to shore up the world's number two economy, which is suffering a slowdown in growth.

It also announced it would reduce the amount of money banks are required to keep in reserves - the fourth such move this year - in a bid to encourage lending.

"The 'double cuts' will further stimulate consumers' buying impetus," CIA said.

"With active coordination by local governments and accelerated new project launches by property developers, we expect both the supply and demand sides of the real estate market to continue to heat up from next month until the end of the year," it said.

The government on Tuesday also lowered minimum downpayment levels on some second home purchases to 20 per cent, after reducing the requirement nationwide in March.

The March move rolled back a four-year-old policy implemented to rein in soaring prices that were making homes too expensive for many buyers and raising worries over social unrest.

In many cities, minimum downpayment levels for second homes used to be as high as 70 per cent.

But continued weakening in growth in the world's second-largest economy has prompted the government to switch tack to support the property sector, a key driver of expansion.

Land sales to developers are also a major source of revenue for cash-strapped local governments.

China's economy expanded 7.4 per cent last year, the slowest pace since 1990, and weakened further to 7.0 per cent in each of the first two quarters this year.

The average price in China's top 10 cities was 19,962 yuan per square metre last month, up 3.83 per cent from a year earlier - picking up from a 1.30 per cent rise in July.

AFP

Macau's gambling revenue tumbles 35.5% in August

SEP 1, 201512:50 PM

[HONG KONG] Gambling revenue in Macau plunged 35.5 per cent in August from a year earlier, sliding for fifteen months in row as China's slowing economic growth exacerbated a slump caused by a broader crackdown on conspicuous spending.

Casino revenues in the world's biggest gambling hub dropped to 18.6 billion patacas (S$3.24 billion) a year earlier, matching the 18.6 billion patacas in June, according to data released by the Macau government on Tuesday.

Analysts had forecast a decline of around 36-38 per cent.

REUTERS

South Korea president says labour reforms vital, urges unions to cooperate

SEP 1, 201512:47 PM

[SEOUL] South Korean President Park Geun-hye on Tuesday called for a stronger push to revamp the country's rigid labour structure, urging the country's politically powerful trade unions not to stand in the way of reform.

Last month, Ms Park called for "major surgery" on Asia's fourth-largest economy, citing labour practices as a key area in need of sweeping reforms along with the public, education and financial services sectors.

The government wants to make wages more dependent on function and performance than seniority, make it easier to hire and fire workers, and to shorten working hours that are among the world's longest. It plans to submit amendments to labour laws for parliament's approval later this year.

South Korea has relatively low unemployment of around 3.5 per cent. But, there is a large wage divide between regular and temporary workers, and between those working in the big conglomerates that dominate the economy, and smaller companies.

However, youth unemployment hit a 16-year high of 10.3 per cent in the first quarter, edging down to 9.9 per cent in the second quarter. "We are in a situation where failure to reform would be self-destructive," a presidential statement quoted Ms Park as saying during a regular cabinet meeting. "There is no future in our nation if our young people lose hope and give up dreaming," she said.

The country's five main business lobby groups issued a joint statement on Monday welcoming the government's push for labour reforms and vowing to cooperate with its economic revival efforts.

But unions are resisting proposals to revise labour legislation saying they are too harsh on workers and that any reform measures should be adopted after full discussion with labour and in exchange for more sacrifice from employers.

One of South Korea's two nationwide labour groups has boycotted reform negotiations with the government and business, while the other this week returned to the table with a list of conditions.

Unions represent just 10 per cent of workers in South Korea but are politically powerful. Labour-management relations are more harmonious than during the violence-prone 1980s.

Ms Park said unions should speak for the entire workforce. "The labour unions should not cling to the established interests of the 10 per cent, regular workers at large companies, but should turn their ears to the tearful appeal by the other 90 per cent - workers and job-seeking youths," Ms Park said.

REUTERS

GE2015: All 89 seats to be contested for the first time since Independence

CHEN HUIFENxuifen@sph.com.sg@ChenHuifenBT

SEP 1, 201512:39 PM

[SINGAPORE] All 89 seats will be contested for the first time since Independence at the close of Nomination Day.

As of Tuesday 12:30pm, three-corner fights have been confirmed in Bukit Batok, MacPherson and Radin Mas Single Member Constituencies, according to Straitstimes.com.

The Workers' Party (WP)'s rookie candidate Bernard Chen, 29, a funeral services company executive will go up against the PAP's Tin Pei Ling and the National Solidarity Party's Cheo Chai Chen in MacPherson, which was carved out of the Marine Parade GRC.

In Radin Mas, the PAP incumbent Sam Tan will face off against Kumar Appavoo of the Reform Party and an independent candidate, blogger Han Hui Hui.

Another independent, businessman Samir Salim Neji, 45, is contesting Bukit Batok against the Singapore Democratic Party's Sadasivam Veraiah and the PAP's Teo Ho Pin.

The other 10 single-seat wards and 16 Group Representation Constituencies (GRCs) are seeing straight fights. At the 2011 polls, there was only one three-cornered fight between the PAP's Michael Palmer, the WP's Lee Li Lian, and Desmond Lim Bak Chuan of the Singapore Democratic Alliance.

Yahoo's chief Marissa Mayer says expecting twins in December

SEP 1, 20151:19 PM

[NEW YORK] Marissa Mayer, chief executive officer of Yahoo! Inc, said she is pregnant with identical twin girls that are due in December.

The 40-year-old plans to take limited time away from her role and work throughout the pregnancy as she did with the birth of her son, according to a post on her blog. The news has been shared with the board and Yahoo's executive team, she said.

"Moving forward, there will be a lot to do for both my family and for Yahoo," Ms Mayer wrote. "Both will require hard work and thoughtful prioritization." Mayer's pregnancy comes as the Sunnyvale, California-based portal prepares to spin off its stake in Alibaba Group Holding Ltd to investors. Yahoo expects the deal to be completed in the fourth quarter.

BLOOMBER
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PBOC said to impose reserve requirement on yuan forwards trading

SEP 1, 20151:13 PM

[BEIJING] China's central bank moved to curb speculation in the currency market and limit capital outflows, imposing a reserve requirement on financial institutions trading in foreign-exchange forwards for clients.

The People's Bank of China, effective Oct 15, will mandate a deposit of 20 per cent of sales to be held at zero interest and frozen for a year, according to six people familiar with the matter. The change, which will take effect on Oct 15, is aimed at preventing macro financial risks, said the people, who asked not to be identified because they aren't authorised to speak publicly.

China rocked world financial markets on Aug 11, when it devalued the yuan in what it said was a one-time adjustment. The PBOC said that day it would promote the convergence of the onshore and offshore yuan rates. The currency in Shanghai declined 2.6 per cent in August, the biggest monthly decline in two decades.

"The PBOC hopes to limit the selling of yuan forwards on persistent depreciation expectations," said Andy Ji, a Singapore-based currency strategist at Commonwealth Bank of Australia. "But the depreciation pressures will remain as the real economy continues to slow." The currency in Shanghai rose 0.08 per cent Tuesday to 6.3714 a dollar as of 10:43 am in Shanghai, while the offshore rate climbed 0.16 per cent to 6.4352 in Hong Kong. The new rule is a step toward preventing capital outflows by increasing the cost of speculation in the forwards market, according to Rabobank Group.

"My first impression is that this may drive a slight technical convergence in the onshore and offshore yuan curve from current levels," said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. "I am not sure more restrictions bring us closer toward financial market reform." The PBOC didn't immediately reply to a fax seeking comment.

BLOOMBERG

Australia leaves rates unchanged as falling Aussie dollar cushions China-led commodity drop

SEP 1, 20151:08 PM

[SYDNEY] Australia left interest rates unchanged Tuesday (Sept 1) as a declining currency cushions the impact of lower commodity prices and a weaker outlook for key trading partner China.

Reserve Bank of Australia Governor Glenn Stevens and his board kept the cash rate at a record-low 2 per cent, as predicted by markets and economists following reductions in May and February. The currency has dropped more than 2 US cents since the last meeting."We think the hurdle for rate cuts is still a high one," Alex Joiner, chief economist for Australia at Bank of America Merrill Lynch, said before the release. On the currency, "the RBA has softened its language in this space," no longer referring to further depreciation as likely or necessary, he said.

Australia has so far had little success in stimulating industries with rate cuts as a decade-long mining investment boom unwinds. Businesses plan to cut investment by 23 per cent this fiscal year as firms decide they can meet demand from heavily indebted households with existing capacity.

One area where cheap borrowing costs have worked is the property market: prices in Sydney have soared and Mr Stevens has described parts of the market as "crazy." Traders are pricing in a 50-50 chance of another rate cut by November as Australia, the developed world's most China- dependent economy, struggles to cope with slumping prices for key resource exports.

China devalued its currency Aug 11, and a day later reported industrial production, investment and retail data that trailed analysts' estimates. After China's stock market recorded the steepest falls since 1996, policy makers Aug 25 cut benchmark lending and saving rates for the fifth time since November 2014 and lowered banks' required reserve ratio by half a percentage point.

Yet Australia's labour market has remained relatively resilient, aided by weaker wages growth, with unemployment at 6.3 per cent in July as more people entered the workforce.

Similar to the US, debate is intensifying Down Under on whether potential growth is lower than earlier thought, which would help explain the stabilizing labor market. A reduced speed limit from the RBA would ease pressure to cut rates. Economists predicted Australia's economy expanded 2.2 per cent in the second quarter from a year earlier ahead of data due out Wednesday."Growth rates have mostly started with a '2' for a while now - despite the lowest interest rates in our lifetimes," Mr Stevens said in remarks last week. "It may be about changing demographics. It may be that potential growth is a bit lower than we used to think - though I don't think we can know whether that is so at present."

REUTERS

Hong Kong: Stocks fall on China manufacturing data

SEP 1, 201510:06 AM

[HONG KONG] Shares in Shanghai and Hong Kong sank Tuesday after an official reading on Chinese manufacturing activity indicated the sector contracted in August, the latest data highlighting a slowdown in the mainland economy.

In Hong Kong the benchmark Hang Seng Index fell 0.54 per cent, or 116.49 points, to 21,554.09 soon after opening.

AFP

Update: Malaysia stocks rally most since 2013 as Bersih protests end, oil jumps

SEP 1, 20151:10 PM

[KUALA LUMPUR] Malaysian stocks climbed the most in two years on Tuesday (Sept 1) and the currency strengthened after protests calling for the resignation of Prime Minister Najib Razak ended peacefully and an overnight surge in crude prices spurred rallies by oil producers.

The FTSE Bursa Malaysia KLCI Index rose as much as 2.9 per cent, the biggest advance since May 2013, before paring gains to 1.1 per cent at 9:19 am in Kuala Lumpur. SapuraKencana Petroleum Bhd jumped 8.1 per cent. The ringgit appreciated 0.9 per cent versus the US dollar. The nation's markets were closed on Monday for holidays.

The Malaysian equity index fell 15 per cent from its July 2014 high through Friday as political uncertainty clouded the outlook for an economy hit by slumping oil prices and an emerging-market selloff.

Weekend Bersih rallies that saw tens of thousands of people in the capital failed to draw a large number of ethnic Malays, a sign that a funding scandal is yet to spur major dissent within the premier's grassroots power base.

Crude surged 8.8 per cent in New York on Monday to cap a three-day, 27 per cent gain. Malaysia is Asia's only major net oil exporter.

BLOOMBERG

Asia: Stocks extend losses as Shanghai hit by more weak data

SEP 1, 201511:42 AM

[HONG KONG] Asian stocks sank Tuesday, with Shanghai tumbling more than three percent, following another batch of data showing weakness in China's economy, while gold and the yen advanced as fears over the world economy sent investors into safer assets.

Traders are also keeping an eye on the release Friday of a crucial US jobs report, which could play a key role in the Federal Reserve's decision on whether to raise interest rates next month, adding to market uncertainty.

There are fears a rate hike will further jolt confidence in the global economy, which has already been rocked by the rout in Chinese stock markets.

"Investors are concerned about the strength of the global economy, which is why you're seeing a sell-off in various stock markets," Ayako Sera, a strategist at Sumitomo Mitsui Trust Bank Ltd in Tokyo, said. "Investors are also taking a cautious stance." Shanghai dived 3.20 per cent after China's statistics bureau said its Purchasing Managers' Index (PMI) of manufacturing activity came in at 49.7 last month, its lowest since August 2012.

While the figure is better than last week's preliminary private reading from Chinese media group Caixin - which hit a six-and-a-half-year low - it is still below the 50-point mark that indicates contraction.

The indexes are seen as key barometers of the Asian giant's economic health, a key driver of global growth.

Other regional markets followed suit, with Hong Kong losing 0.92 per cent, Tokyo down 2.38 per cent by lunch, Sydney shedding 1.23 per cent and Seoul 1.11 per cent lower.

"The manufacturing index still shows that the economy is in the process of seeking a bottom," said Wu Kan, a Shanghai-based fund manager at JK Life Insurance. "The market is unlikely to pick up anytime soon."

China's stock markets have slumped 40 per cent since hitting a June 12 peak as investors grow concerned about high valuations and the strength of the world's number two economy.

The extreme volatility has convulsed global stocks and has pushed up the price of investments considered safe, including the yen and bullion.

On Tuesday the dollar fell to 120.90 yen from 121.24 yen in New York trade Monday, while gold traded at US$1,140.45, against US$1,131.62 late Monday.

Oil prices tumbled in Asia after recording gains of more than 25 percent over the previous three sessions.

US benchmark West Texas Intermediate for October delivery fell US$1.50, or three per cent, to $47.70 and Brent crude for October tumbled US$1.46, or 2.7 per cent, to US$52.69 a barrel.

The black gold, which had already posted massive gains on Thursday and Friday, surged Monday after the US Department of Energy said domestic output in June was much lower than first stated, while monthly estimates for January-May were revised lower.

Also, a statement from the Opec oil cartel to the effect that the continuing downward pressure on prices "remains a cause for concern" fuelled hopes it will lower its own output levels.

The Organization of the Petroleum Exporting Countries, responsible for about 40 per cent of global crude production, tied the price pressure to higher production and market speculation.

"Needless to say, Opec, as always, will continue to do all in its power to create the right enabling environment for the oil market to achieve equilibrium with fair and reasonable prices," Opec said in a monthly report.

BLOOMBERG

Oil prices drop 3% as investors retreat from overnight gains

SEP 1, 201510:48 AM

[SINGAPORE] Oil prices fell 3 per cent in Asian trade on Tuesday, with investors covering short positions and taking profits after Brent and US crude soared more than 8 per cent in the previous session.

Both Brent and US crude prices dropped nearly US$2 a barrel shortly after trading in Brent started on Tuesday before recovering later in the session. "A lot of the fall was due to short covering," said Ben Le Brun, market analyst at Sydney's OptionsXpress. "There could be a bit of profit taking for people who have gone long," he added.

The falls also indicated investors may have "gone overboard" in pushing up prices so fast, Le Brun said.

US crude, also known as West Texas Intermediate, climbed 27.5 per cent by the end of the previous session after three days of gains, the largest three-day increase in dollar terms since February 2011 and the biggest percentage increase since August 1990.

The surge was fuelled by an Opec commentary saying the cartel was willing to talk to other producers to achieve reasonable oil prices, as well as by the downward revision of US output data by the US Energy Information Administration (EIA). "(The Opec comments) could be just a bit of politicking given the strategy to date looked to be all about market share,"ANZ said in a market report on Tuesday. "But it does suggest that many producers are likely to be hurting at these levels." Revised EIA data published on Monday showed US domestic oil production peaked at just above 9.6 million barrels per day (bpd) in April before falling by more than 300,000 bpd over the following two months.

US commercial crude stocks fell by 1.5 million barrels to 449.3 million barrels last week, according to a Reuters poll of analysts on Monday taken ahead of US industry and government data.

Despite the fall in US production the global oil market is still over supplied with oil and a decline in US production is increasingly likely in 2016, Morgan Stanley said in a report on Tuesday.

Brent crude for October delivery had dropped US$1.47 to US$52.68 a barrel, or 2.7 per cent, as of 0226 GMT after climbing $US4.10, or 8.2 per cent, in the previous session. It dropped by US$1.99 a barrel earlier in the session.

US crude for October delivery dropped US$1.49, or 3 per cent, to US$47.71 a barrel, after it settled up US$3.98, or 8.8 per cent in the previous session. It earlier dropped by US$1.97 a barrel.

Investors will be watching key US data, including oil stocks, manufacturing and vehicle sales figures, later on Tuesday to give further direction to prices.

That came after official data from China on Tuesday showed its manufacturing sector contracted at its fastest pace in three years in August, reinforcing concern over the health of the world's second-largest economy.

REUTERS