Thursday, November 5, 2015

Singapore Airlines to delist and privatise Tiger Airways

Singapore Airlines to delist and privatise Tiger Airways

SINGAPORE Airlines (SIA) on Friday launched a voluntary conditional general offer for all the shares of Tiger Airways that it does not already own, with the aim of delisting and privatising the budget carrier.
SIA currently owns 55.8 per cent of Tiger Airways, valued at approximately S$1.02 billion.
"The offer provides Tiger Airways shareholders an opportunity to realise their investment in Tiger Airways at a compelling premium," said SIA in a press release.
It is offering Tiger Airways shareholders the offer price of S$0.41 per Tiger Airways share in cash, as well as an option to subscribe for SIA shares at S$11.1043 per SIA share.
The offer price represents a premium of 32 per cent, 35 per cent and 42 per cent respectively over the last traded price, the one-month and three-month volume-weighted average prices of Tiger Airways shares, preceding the offer.
Said SIA CEO Goh Choon Phong: "We believe our offer to Tiger Airways shareholders is compelling as a significant premium is being offered and hope that it will be considered favourably. We are confident that full integration of Tiger Airways into the SIA Group will result in enhanced operational and commercial synergies, ensuring Tiger Airways' long-term success.
"Tiger Airways shareholders, who have also provided support through the airline's challenging times, will also have an opportunity to share in its future success through the share option component of the Offer, which enables them to become investors in the larger SIA Group."
The option to subscribe for SIA shares is exercisable at any time during a 15 market day period, which will commence on a date to be announced by SIA.
The offer will be funded through internal cash resources.

Man charged with sending fake tweets to manipulate stocks

Man charged with sending fake tweets to manipulate stocks

[SAN FRANCISCO] A Scottish man was charged by US prosecutors with sending fake posts on Twitter Inc to manipulate stocks that he then traded.
Prosecutors in San Francisco said James Alan Craig used names similar to real market research firms, including the name associated with the founder of Muddy Waters Research, to put out false information about companies. He caused shareholders to lose more than US$1.6 million, the US said in a statement.
BLOOMBERG

Violence as anti-capitalist march hits London

Violence as anti-capitalist march hits London

[LONDON] Activists set a police car alight and scuffled with riot police in central London as thousands took part in a "Million Mask March" anti-capitalist demonstration on Thursday night.
Many activists wore the white masks associated with the international Anonymous network at the march, an annual anti-establishment protest that takes place on Britain's Guy Fawkes Night.
Demonstrators threw fireworks and bottles at police, some of whom were knocked from their horses, while several bleeding protesters were treated for injuries as authorities tried to contain the march.
Police said 28 people were arrested for public order offences and that three injured officers had been taken to hospital.
Protesters chanted "One solution: revolution" and "Whose streets? Our streets" and split into different factions, confronting lines of police outside Buckingham Palace and the office of Prime Minister David Cameron.
Some demonstrators ran through London's major shopping district around Oxford Street, smashing windows and engaging in running scuffles with police as shops closed their doors.
One protester who emerged from the crowd with blood pouring from his head close to the headquarters of the ruling Conservative party said he had been caught between a surge of demonstrators and police batons.
"I was at the front, I was chatting with the officers asking them what their agenda was and why they were trying to stop us walking down the street," said Terry Small, 20, from the southern English city of Plymouth.
"I got pushed in the back by people trying to move forward... I couldn't move." One group of activists gathered outside the British premiere of the finale of the Hunger Games in Leicester Square, as stars Jennifer Lawrence and Julianne Moore walked the red carpet.
Mexican anarchist Aztecarna Peatonito said the march was a protest against inequality and that wearing the white masks of Guy Fawkes, the man who plotted to blow up parliament in 1605, helped promote their cause.
"We tried for six years to get the press to take us seriously. It is only when we wore the masks that we started getting attention," Peatonito said. "Anyone who is violent is not with us."
Police had put in place special security measures ahead of the march, which also saw scuffles and arrests last year, and formed cordons surrounding two groups of marchers in Trafalgar Square and outside parliament.
Under the measures, demonstrators were to be confined to certain areas of central London and were required to remove their masks if asked by police and to disperse by 2100 GMT.
Three men "acting suspiciously" were arrested before the demonstration got under way, and were found to be in possession of knives, lock picks and smoke grenades, police said.
AF
P

RBA says rate cuts and currency weakness are supporting Australia's growth

RBA says rate cuts and currency weakness are supporting Australia's growth

[SYDNEY] Australia's central bank said interest-rate cuts this year and the currency's depreciation are supporting growth, indicating interest rates are likely to remain on hold.
The inflation forecast was lowered for the year through June 2016, as expected, and growth trimmed by a quarter point at the start and end of the forecast period, in the Reserve Bank of Australia's quarterly monetary policy statement released Friday.
The RBA reiterated its outlook from three days ago, when rates were kept unchanged for a sixth month at 2 per cent, saying prospects for improved economic conditions had "firmed a little" in recent months. It also repeated that the inflation outlook "may afford scope" for an easing in policy if needed.
Today's statement was upbeat about Australia's jobs market, saying employment growth is expected "to remain relatively strong" and the participation rate will increase a little further. Unemployment is projected to remain within its recent range of 6 per cent to 6.25 per cent over the next year and decline gradually toward the end of the forecast period, the central bank said.
The RBA said signs that easy policy and a lower currency are supporting growth are "evident in a range of indicators, including employment growth, job vacancies, surveys of business conditions and trade data." It noted that the economy appeared to pick up in the third quarter as resource exports and dwelling investment rebounded from a weak second quarter.
The central bank is taking a glass half full approach to Australia's economy. It cites better business surveys and a steady unemployment rate, even as the unwinding of a mining investment boom detracts from growth, to justify its confidence. The glass half empty view of those economists who expect further rate cuts, in contrast, points to slow growth, recession-level wage gains, weak investment and slowing population increases.
Governor Glenn Stevens acknowledged in a speech Thursday that any near-term move in interest rates was likely to be a cut not a raise. Traders are pricing in a 25 per cent chance of a rate reduction at the December meeting, climbing to more than 60 per cent in February. The RBA's board doesn't convene in January.
The central bank today forecast a pickup in consumer demand, fueled by low rates and employment growth and predicted the households would dip into their savings to fund increased spending amid continued slow wages growth.
Still, it said indications of investment intentions in non- mining industries "provide little, if any, evidence of a material pickup in the near term." The RBA again held out hope for the future, noting some pre-conditions for a stronger recovery in investment are in place: business borrowing costs are low, business conditions are above average, and the currency has "depreciated significantly" in the past couple of years.
The Australian dollar declined more than 30 per cent in the past three years to trade at just over 70 US cents in response to a drop in the price of key commodities. Anxiety has been intensifying about China, Australia's biggest trading partner, following a stock market slump and a surprise yuan devaluation in August that roiled global markets.
The central bank said today "a key source of uncertainty" is the outlook for growth and trade in Asia, particularly China, with implications for iron ore, coal and the terms of trade.
It said weakness in Chinese residential and non-residential construction was part of the reason for a deterioration in conditions in the Chinese industrial sector since late 2014.
"This has been particularly acute in the north-eastern provinces and in the mining and manufacturing industries," the RBA said today. "Persistent weakness in these parts of the economy could increase the vulnerability of financial institutions with concentrated exposures." In Australia, the economy is forecast to expand by 2 per cent to 3 per cent in the year through June 2016, accelerating to 2.75 per cent to 3.75 per cent in the year through June 2017. In the 12 months through December 2017 it's seen expanding by 3 per cent to 4 per cent.
Mr Stevens acknowledged Thursday that Australia's assumed rate of potential growth had been "lowered a little bit" to reflect a weaker rate of population growth. He didn't put a figure on the new number, but the 30-year average annual growth rate is 3.3 per cent and the economy's expansion has come in below that level for six of the past seven years.
BLOOMBERG

Sparks fly as fight begins in the US over TPP trade deal

Sparks fly as fight begins in the US over TPP trade deal

[WASHINGTON] Opponents of a huge Pacific free-trade deal began mobilizing on Thursday (Nov 5) as the administration of President Barack Obama released the agreement text to begin the process of seeking ratification from Congress.
Mr Obama declared the deal struck with Japan, Australia, and nine other Pacific economies as a pact written to US standards and interests, warning that the US would lose out if it is not endorsed by the legislature.
"It's the highest standard trade agreement in history," Mr Obama said in a statement."The TPP means that America will write the rules of the road in the 21st century... And if we don't pass this agreement - if America doesn't write those rules - then countries like China will. And that would only threaten American jobs and workers and undermine American leadership around the world." But with the public now able to examine the 5,000 pages of details of the deal, kept secret throughout negotiations, signs were emerging that the White House could have a tough fight on its hands.
Opponents have already scheduled protests in Washington for November 16, saying that the agreement is "worse than we thought".
Senator Bernie Sanders, a Democrat running to succeed Mr Obama in next year's election, used that same phrase to voice his opposition."This trade deal would make it easier for corporations to shut down more factories in the US and ship more jobs to Vietnam and Malaysia where workers are paid pennies an hour," he said."I will do everything I can to defeat the TPP."
Activists bashed it for having few teeth to enforce labor rights and environmental protections, while giving drug companies patent protections that would deny poor people access to vital drugs.
"The TPP really has a corporate agenda... and does not help working people," said Celeste Drake of the AFL-CIO labor federation."The words 'climate change' don't even appear in the text, a dead giveaway that this isn't a 21st-century trade deal," said Michael Brine, executive director of the Sierra Club.
The challenge Mr Obama faces has already played out once, when he struggled hard to get the authority from Congress to negotiate a final deal. The president had to lean far more on Republicans than his own Democratic party to get support, and then it barely passed.
Democrats fear the deal with have similar results to the 1994 North American Free Trade Agreement, which they say resulted in tens of thousands of US jobs being lost to Mexico and Canada.
Many Republicans have meanwhile warned the White House that the deal should not give away too much to the other 11 countries in it.
The challenge is that the TPP pact cannot be amended now that it is complete, and must be accepted or rejected as a whole by Congress.
Late Thursday, Mr Obama gave Congress official notification that he intends to sign the pact in 90 days.
Then there is a lengthy period in which a full assessment of its economic impact is done, and afterward Congress will have a chance to vote. Some estimates say that could mean the first ratification vote would not happen until later next year.
Conservatives were cautiously supportive."Enactment of TPP is going to require the administration to fully explain the benefits of this agreement and what it will mean for American families," said the powerful new speaker of the House of Representatives, Paul Ryan.
"But I remain hopeful that our negotiators reached an agreement that the House can support because a successful TPP would mean more good jobs for American workers and greater US influence in the world."
The Business Roundtable, a group of top chief executives, said the deal has "incredible potential for even more economic growth and job creation in the United States, while also improving environmental and labor standards in the TPP countries." Appended to the bill to earn support in Congress and from businesses and labor groups was an agreement by the 12 to not manipulate their currencies for trade advantage. That was an issue a number of legislators demanded to earn their support.
As for the public, a Monmouth University poll said Americans generally have "no opinion" and are "simply not tuned in" to the TPP."The potential impact on Main Street remain difficult for most Americans to picture," said polling director Patrick Murray.
AFP

US, China least concerned about climate change: poll

US, China least concerned about climate change: poll

[MIAMI] China and the United States are the world's biggest polluters, but their residents are among the least concerned about the harms of climate change, a global poll found Thursday.
Just 18 per cent of those surveyed in China said climate change is a very serious problem, and 15 per cent were very concerned that climate change would harm them personally, according to the Pew Research Center.
In the United States, 45 per cent said climate change was very serious, and one in three expressed concern about personal harm as a result.
In contrast, the consensus globally is that climate change is a pressing problem, particularly ahead of key climate talks in Paris later this year.
"Majorities in all 40 nations polled say it is a serious problem, and a global median of 54 per cent consider it a very serious problem," said the findings.
"Moreover, a median of 78 per cent support the idea of their country limiting greenhouse gas emissions as part of an international agreement in Paris." The survey was taken from March to May, and is based on 45,435 face-to-face and phone interviews with adults in 40 countries.
Latin America had the highest number of people taking climate change seriously (74 per cent), followed by Africa (61 per cent) and Europe (54 per cent).
Less than half of those polled in the Asia Pacific region (45 per cent) and Middle East (38 per cent) viewed climate change as a very serious problem.
Regarding solutions, "there is general agreement about what should be done to deal with global warming," said the report.
"As the Paris conference approaches, majorities in 39 nations (Pakistan is the outlier) say they support their country limiting its emissions as part of a climate accord," it added.
"Even in China and the United States, where overall concern about climate change is less intense, large majorities support an international agreement to limit greenhouse gas emissions."
AFP

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