Standard Chartered set to raise US$5.1 billion in rights issue

Standard Chartered Plc said it planned to raise 3.3 billion pounds (S$7.1 billion) in a rights issue as the bank reported an unexpected quarterly loss and said that it would pay no final dividend for this year. 

PHOTO: REUTERS

NOV 3, 201512:57 PM

[LONDON] Standard Chartered Plc said it planned to raise 3.3 billion pounds (S$7.1 billion) in a rights issue as the bank reported an unexpected quarterly loss and said that it would pay no final dividend for this year.

The two-for-seven issue priced at 465 pence per share will boost the lender's common-equity Tier-1 capital ratio to 13.1 per cent from 11.5 per cent, the lender said in a statement on Tuesday. Largest shareholder Temasek Holdings Pte intends to take up rights for 15.8 per cent of existing share capital, the bank said.

The pretax loss of US$139 million for the third quarter compared with a $1.53 billion profit a year earlier, the London- based bank said in a separate statement. The average of five analyst estimates compiled by Bloomberg was for a US$903 million profit.

"The business environment in our markets remains challenging and our recent performance is disappointing," Chief Executive Officer Bill Winters said.

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Mr Winters, 54, is struggling to revive the lender after its value halved over the past two years. The bank's plans to raise capital come with British regulators set to publish stress tests next month.

Its stock has declined 26 per cent in London this year.

BLOOMBERG

    
 

M1 to create next-generation data centre with partners

By

Nisha Ramchandaninishar@sph.com.sg@Nisha_BT

TELCO M1 is tying up with VMware, Palo Alto Networks and Huawei to implement a next-generation software-defined networking (SDN) technology proof of concept in its cloud-based data centre. 

PHOTO: ST FILE

NOV 3, 201510:10 AM

TELCO M1 is tying up with VMware, Palo Alto Networks and Huawei to implement a next-generation software-defined networking (SDN) technology proof of concept in its cloud-based data centre.

Through it, M1 will be able to develop and launch new services more swiftly and with greater flexibility for its corporate customers.

Data centres generally incorporate various hardware from different vendors using individual proprietary software, which can make network planning or introducing new services for customers complicated and time-consuming.

SDN technology gives data centres a comprehensive unified view of its network with control over each network element via a central management tool, M1 said in a release on Tuesday.

"The corporate market is a growth segment for M1, and we have continually enhanced our offerings to better serve these customers through our connectivity solutions and cloud-based data centre," Willis Sim, chief product development and corporate solutions officer at M1. "M1's Software-Defined Networking Data Centre (SDNDC) will further enhance our capabilities and agility to serve large enterprises and government agencies.
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GIC in talks with India-based app Little on possible funding: report

By

Nisha Ramchandaninishar@sph.com.sg@Nisha_BT

GIC is in talks with India-based app "Little" for a potential US$50-million financing round, according to The Times of India (TOI), which cited sources. 

PHOTO: BLOOMBERG NEWS

NOV 3, 201512:36 PM

GIC is in talks with India-based app "Little" for a potential US$50-million financing round, according to The Times of India (TOI), which cited sources.

This comes after the consumer lifestyle deals app Little raised US$50 million in July this year, from Paytm - which is backed by Alibaba - Tiger Global and SAIF Partners.

"This is one of the significant bets by GIC in the new economy space in India, besides its large backing in Flipkart. The discussions are under way and they are looking to put a big cheque in the company," TOI quoted a source as saying.

Little's chief Manish Chopra declined to comment, while a GIC spokesperson did not respond to an email from TOI, the report added.

    
 

South Korea central bank to keep easy stance but wary of household debt, Fed hike

South Korea's central bank promised to keep its monetary policy easy in a report released on Tuesday, but stopped short of signalling additional interest rate cuts as it keeps wary of household debt levels and external risks. 

PHOTO: BLOOMBERG

NOV 3, 201511:17 AM

[SEOUL] South Korea's central bank promised to keep its monetary policy easy in a report released on Tuesday, but stopped short of signalling additional interest rate cuts as it keeps wary of household debt levels and external risks. "We plan to keep our monetary policy accommodative as the ongoing recovery is steady and as inflation is expected to remain low," the Bank of Korea's twice-yearly report on monetary policy said.

At the same time, the central bank stressed it would act with other authorities to rein in household debt should that pose risks to financial stability, while closely monitoring external risks such as changes in the US Federal Reserve's policy and economic sluggishness in China.

The BOK has lowered interest rates four times between August 2014 and June, taking the base rate to a record low 1.50 per cent.

The central bank said the cuts in March and June had"effectively" influenced real borrowing rates by bringing them down. "Our market interest rates may rise after the Fed hikes interest rates, regardless of our monetary policy. However, they will probably rise at a limited pace as we plan to keep rates accommodative enough to support economic growth," said Yoon Myun-shik, a deputy governor at the Bank of Korea, at a briefing on Tuesday's report.

The report added that South Korea does not face a high chance of capital flight en masse even if interest rates are hiked in the US.

Although South Korea saw outflows during the third quarter due to jitters sparked by China, stocks and bonds saw modest inflows in October, Mr Yoon said.

The BOK stated that its response mechanisms against sudden outflows have strengthened "considerably" compared to the past. South Korea's country's economic fundamentals are more stable than those of other emerging economies, it added, citing its massive foreign exchange reserves. "However, this does not mean that we are complacent," Mr Yoon said. "Rather, we are continuing efforts to keep our economy strong as weakness in other emerging economies after the Fed rate hike may become contagious." The BOK also said offshore interest in assets denominated in the Korean won has increased but added it will keep monitoring international financial markets in case of sudden changes.

REUTERS

    
 

Asian currencies gain against US dollar

The US dollar retreated in Asia Tuesday in cautious trading as investors waited for the release of key economic data from the United States that could influence a Fed decision on interest rates. 

PHOTO: REUTERS

NOV 3, 201512:27 PM

[SINGAPORE] The US dollar retreated in Asia Tuesday in cautious trading as investors waited for the release of key economic data from the United States that could influence a Fed decision on interest rates.

The Australian and New Zealand dollars also gained against the US currency ahead of a meeting of the Reserve Bank of Australia (RBA), with analysts saying it remains a close call on whether the Australian central bank will keep interest rates the same.

Japanese financial markets are closed for a holiday.

"In what is going to look like a bumpy week, investors are rather cautious," Bernard Aw, market strategist at IG Markets in Singapore, told AFP.

He said investors are easing their US dollar positions as they wait for fresh economic data this week from the United States expected to give a clearer picture of the health of the world's biggest economy, including the closely-watched non-farm payrolls.

"Investors are paring back their long dollar positions and this is helping Asian currencies," Aw said.

He added that the US data would "set the tone" for more speculation on the next move by the Fed, the US central bank, on interest rates.

The Fed has so far held back from the first interest rate hike since 2009, citing sluggish global economic conditions.

Last month, however, members of the policy setting Federal Open Market Committee hinted they might raise rates during their last meeting of the year in December.

An increase in US interest rates would typically swing investments into the United States for higher returns, boosting the US currency.

In Singapore trade at around 0340 GMT, the US dollar was down against the Singapore dollar, Taiwan dollar, South Korean won, Philippine peso, Indonesian rupiah, Indian rupee, Chinese yuan, Malaysian ringgit and the Thai baht.

The dollar was also trading at 120.7438 Japanese yen, down from 120.77 in late US trade in New York on Monday.

The euro fell to US$1.1013 from 1.1014 and was lower at 132.9571 yen from 133.02 yen.

The Australian dollar was up 0.01 per cent at US$0.7148 and the New Zealand dollar was trading 0.21 per cent higher at US$0.6758.

"All eyes will be on the outcome of the RBA monetary policy decision," Singapore's United Overseas Bank said in a market commentary.

"We believe the RBA will refrain from easing policy." DBS Bank said that with Australia's inflation below the official target of 2-3 per cent for the fourth straight quarter in the third quarter, the RBA "may have to revisit its stable rate stance".

AFP

    
 

Singapore, China to sign high-level agreements during Xi's visit

By

Soon Weilunsoonwl@sph.com.sg@SoonWeilunBT

Singapore and China are expected to announce details of high-level agreements between the two governments, including the third government-to-government project later this week, when Chinese President Xi Jinping visits the Republic on Nov 6 and 7. 

PHOTO: REUTERS

NOV 3, 201512:29 PM

SINGAPORE and China are expected to announce details of high-level agreements between the two governments, including the third government-to-government project later this week, when Chinese President Xi Jinping visits the Republic on Nov 6 and 7.

The two countries are also expected to release details on the upgraded version of the bilateral free trade agreement.

On the cards are also education, customs and finance industry agreements that will be inked between the two nations during Mr Xi's visit.

Economic ties aside, Mr Xi will share his views on bilateral relations, China's relations with Asean and on geopolitical issues in a speech.

Chinese ambassador to Singapore Chen Xiaodong shared these details in a press briefing on Tuesday morning.

Mr Xi's whirlwind tour takes place for less than a day, but is packed with significance and importance for both countries.

Highlighting that Mr Xi's visit happens at a time when both countries are commemorating the 25th year of establishing diplomatic ties, Mr Chen said that leaders from both nations will look at how to "reposition" such ties between Singapore and China.

One of the key highlights will be the announcing of where the third government-to-government collaboration will be located, after Suzhou Industrial Park in 1994 and the Tianjin Eco-City in 2008.

The new project will be established in western China, and will serve as a nodal point in Mr Xi's plans to develop China's western region through the "One Belt, One Road" initiative.

This will be Mr Xi's first state visit to Singapore since becoming president in 2012. It also will be the first visit by a head of state that the newly-minted Singapore government will receive.

Mr Xi, accompanied by his wife Peng Liyuan, will arrive in Singapore on Friday evening and will attend a state banquet held in his honour later that night.

He will then officiate the opening of the China Cultural Centre at Queen Street with Emeritus Senior Minister Goh Chok Tong on Saturday morning, before adjourning to make a public speech on geopolitical issues.

Mr Xi and Ms Peng will then have an orchid named after them in a ceremony at the Botanic Gardens. They will then attend a private lunch hosted by Prime Minister Lee Hsien Loong and his wife Ho Ching.

    
 

Areva says China's CNNC may buy minority stake  

NOV 2, 20159:06 PM

[PARIS] Areva said it signed a memorandum of understanding for a possible partnership with China National Nuclear Corporation (CNNC) that could see the Chinese group take a minority stake in the French nuclear company.

The partnership would also cover "uranium mining, front end, recycling, logistics, decommissioning and dismantling", Areva said in a statement on Monday.

The deal excludes the reactor business that French power group EDF is buying from Areva, the company said. "This project offers numerous opportunities for both AREVA and CNNC," Areva Chairman Philippe Varin said in the statement on Monday following a ceremony in Beijing. "Strengthening the cooperation with our Chinese partners is an integral factor for Areva's future success."

REUTERS