Tuesday, January 12, 2016

Singapore investor confidence at lowest level in three years

Singapore investor confidence at lowest level in three years

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RETAIL investor confidence in the Singapore stock market and economy has slumped to its lowest levels in three-and-a-half years, according to a survey conducted by JP Morgan.
The JP Morgan Investors Confidence Index dropped 15 points to 101 in December 2015, its lowest since June 2012.
The half-yearly survey revealed that Singaporean investors have become increasingly pessimistic about the local economic environment, employment landscape and investment outlook.
Yet, investors' risk profiles and investment strategies remained fairly consistent over the past few years, and only a minority of investors plan to cut investments despite the more bearish sentiment.
 
Investors are also becoming increasingly conservative, with almost half of the respondents citing capital growth and preservation as their main objective for investing, and 24 per cent indicating that they invest to generate a stable income stream.
High dividend stocks remain a top pick for investors aiming to generate a stable income, with real estate investment trusts (Reits) coming in a close second. Reits have recently been gaining in popularity among investors, rising by four percentage points compared to the previous survey.
Meanwhile, more bond investors are choosing Singapore investment grade bonds and high yield bonds.
In the mutual funds market, investors have been allocating increasing amounts of money into balanced and multi-asset funds.
Brian Tan, JP Morgan's head of fund sales in Singapore, said that this increased interest in multi-asset and balanced funds reflects investors' need for flexibility and diversification, given today's challenging investment landscape. He also expects to see more volatility ahead.

Istanbul suicide bomber thought to have entered from Syria recently: Deputy PM

Istanbul suicide bomber thought to have entered from Syria recently: Deputy PM

[ISTANBUL] The suicide bomber responsible for an attack which killed 10 people in Istanbul on Tuesday was thought to have recently entered Turkey from Syria and was not on Turkey's watch list of suspected militants, Deputy Prime Minister Numan Kurtulmus said.
Kurtulmus said thousands of people were being tracked for suspected militant links but the bomber was not one of them.
REUTERS

Update: Blast in Istanbul tourist district kills at least 10 people

Update: Blast in Istanbul tourist district kills at least 10 people

[ISTANBUL] An explosion in the heart of Istanbul's historic Sultanahmet tourist district killed at least ten people and wounded 15 on Tuesday and some local media reports said a suicide bomber may have been responsible.
Several bodies lay on the ground in the Sultanahmet square, close to the Blue Mosque and Hagia Sophia, a major tourist area of Turkey's most populous city. A police officer and witness at the scene reported also seeing several bodies and body parts.
Six German citizens, one Norwegian and one Peruvian were among the wounded, the Dogan news agency said.
A tour company official told Reuters a group from Germany was in the area at the time but said there was no immediate information on whether any of them had been injured.
An official at the German foreign ministry said it could not be ruled out that German citizens may have been injured and that its crisis unit and the consulate in Istanbul were urgently working with the Turkish authorities to find out.
Norway's foreign ministry said one Norweigan man was injured and was being treated in hospital.
The attack at the heart of one of the world's most visited cities comes as Turkey battles Kurdish militants in its southeast and Islamic State insurgents just across its southern borders in Syria and Iraq.
There was no immediate claim of responsibility but Islamist, leftist and Kurdish militants have all carried out attacks in Turkey in the past.
The Istanbul governor's office said the authorities were investigating the type of explosive used and who might have been responsible. It said ten people were killed and 15 wounded but gave no further details.
"We heard a loud sound and I looked at the sky to see if it was raining because I thought it was thunder but the sky was clear," said Kuwaiti tourist Farah Zamani, 24, who was shopping at one of the covered bazaars with her father and sister.
A police officer at the scene said the square was not densely packed at the time of the blast, but that small groups of tourists were wandering around. "It was unimaginable," he said, describing an amateur video he had seen of the immediate aftermath, with six or seven bodies lying on the ground and other people seriously wounded.
Turkey's AHaber television said the blast may have been caused by a suicide bomber but this was not independently confirmed. Ambulances rushed to the scene, ferrying away the wounded as police cordoned off streets, fearing a second attack.
"The explosion was very loud. We shook a lot. We ran out and saw body parts," one woman who works at a nearby antiques store told Reuters, declining to give her name.
"TERRORIST LINKS" SUSPECTED
Prime Minister Ahmet Davutoglu held an emergency meeting in Ankara with the interior minister and security chiefs. A senior official said "terrorist links" were suspected in the attack, but declined to comment further.
The dull thud of the explosion was heard in districts of Istanbul several kilometres away, residents said. Tourist sites including the Hagia Sophia and the nearby Basilica Cistern were closed on the governor's orders, officials said.
The sound of the call to prayer rang out from the Blue Mosque as forensic police officers worked at the scene.
Just over a year ago, a female suicide bomber blew herself up at a police station for tourists off the same square, killing one officer and wounding another. That attack was initially claimed by a far-left group, but officials later said it had been carried out by a woman with suspected Islamist militant links.
Turkey has become a target for Islamic State, with two bombings last year blamed on the radical Sunni Muslim group, in the town of Suruc near the Syrian border and in the capital Ankara, the latter killing more than 100 people.
Violence has also escalated in the mainly Kurdish southeast since a two-year ceasefire collapsed in July between the state and the Kurdistan Workers Party (PKK) militant group, which has been fighting for three decades for Kurdish autonomy.
The PKK has however generally avoided attacking civilian targets in urban centres outside the southeast in recent years.
"Ambulances started rushing in and I knew it was a bomb right away because the same thing happened here last year," said Ali Ibrahim Peltek, 40, who operates a kiosk selling snacks and drinks on the square. "This is not good for Turkey but everyone was expecting a terrorist attack," he said.
Mr Davutoglu's office imposed a broadcasting ban on the blast, invoking a law which allows for such steps when there is the potential for serious harm to national security or public order.

Turkish police seal off historic Istanbul square after blast

Turkish police seal off historic Istanbul square after blast

[ISTANBUL] Turkish police sealed off a central Istanbul square in the historic Sultanahmet district on Tuesday after a large explosion, a Reuters witness said, and the Dogan news agency reported several people were injured in the blast.
Ambulances rushed to the scene of the explosion in Sultanahmet square, close to the Blue Mosque and Hagia Sophia, in a major tourist area of Turkey's most populous city.
REUTERS
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Hillary Clinton just proposed a new tax on the richest Americans

Hillary Clinton just proposed a new tax on the richest Americans

Former US Secretary of State Hillary Clinton's presidential campaign released a new tax proposal on Monday that it called the "Fair Share Surcharge."
An aide to the Democratic front-runner said that the plan was for a 4% surcharge on Americans who make $5 million or more annually — approximately two out of every 10,000 taxpayers.
The aide argued that the tax was justified because many of the richest Americans pay a lower effective tax rate than people who make far less money. The staffer said that the tax would raise an estimated $150 billion over 10 years.
Clinton's plan goes further than the so-called Buffett Rule, the Warren Buffett-inspired tax plan that proposed a minimum 30% tax on incomes above $1 million annually. Clinton has embraced that proposal on the campaign trail.
"This surcharge is a direct way to ensure that effective rates rise for taxpayers who are avoiding paying their fair share, and that the richest Americans pay an effective rate higher than middle-class families," the aide said.
Clinton discussed her proposal at a Monday campaign event in Waterloo, Iowa.
"I want to implement what's called the Buffett Rule — after your neighbor from Omaha, Warren Buffett — which basically says every millionaire should pay at least 30% of his or her income in taxes without being able to dodge it or hire a smart lawyer to avoid it," she said.
Clinton said taxing the wealthiest Americans would be necessary to keep her campaign promise to not raise taxes on people who make less money.
"And I want to go further and impose what I call a 'Fair Share Surcharge' on multimillionaires because right now we're behind and we need to get the wealthy and the corporations to pay more [of] their fair share so I can keep my promise," she continued. "Which is: I will not raises taxes on the middle class."
The proposal comes as Clinton's campaign approaches the home stretch in the first two voting states, which weigh in at the start of February. In recent days, Clinton surrogates have increasingly questioned the liberal credentials of her chief rival, US Sen. Bernie Sanders (I-Vermont), on issues like gun control and Wall Street reform. Sanders has also taken increasing aim at Clinton's Wall Street policies recently.
The Clinton campaign said that it would soon release additional proposals to make the wealthy pay a fairer amount into the system. She's also apparently set to announce tax-relief proposals for the middle class.

Alcoa earnings beat

Alcoa earnings beat

Aluminum giant Alcoa has released its Q4 financial results, kicking off earnings season.
The numbers are mixed.
Alcoa generated revenue of $5.25 billion, which was a bit lighter than the expected $5.30 billion.
Earnings excluding nonrecurring items came in at $0.04 per share, beat the expectation for $0.02.
Shares are up 3% in after-hours trading.
As a global supplier of a key industrial metal, Alcoa is considered a bellwether of the economy.
Like many companies in the commodities business, Alcoa has been challenged by plummeting prices as the global economy has cooled.
"In the Upstream, we faced harsh headwinds with prices for alumina down 43% and aluminum down 28%," CEO Klaus Kleinfeld said. "As a result of our closures, curtailments, productivity actions and new business structure we improved competitiveness and strengthened the portfolio."
In 2016, management forecasts 8% to 9% growth in aerospace products and 1% to 4% growth in automotive products. Building and construction products are expected to grow 4% to 6%.
"In 2016, Alcoa expects a global aluminum deficit of 1.2 million metric tons and a global alumina deficit of 2.8 million metric tons due to global curtailments," management said. "The Company also projects record global aluminum demand in 2016 of 60.5 million metric tons, up 6 percent over 2015.
"Global aluminum demand is expected to double between 2010 and 2020; so far this decade, global demand growth is tracking ahead of this projection."
More: Alcoa Earnings

OPEC president: A 'couple' of members have requested an emergency meeting

OPEC president: A 'couple' of members have requested an emergency meeting

Emmanuel Ibe Kachikwu Nigeria Oil Minister OPEC PresidentREUTERS/Heinz-Peter BaderNigeria's Oil Minister and OPEC president Emmanuel Ibe Kachikwu addresses a news conference after a meeting of OPEC oil ministers in Vienna, Austria, December 4, 2015.
ABU DHABI (Reuters) - Nigeria's oil minister said on Tuesday that a "couple" of members of the Organization of the Petroleum Exporting Countries (OPEC) had requested an emergency meeting, adding that current market conditions support the need to hold such a gathering.
Benchmark Brent crude oil futures were trading at below $31 per barrel on Tuesday, their lowest level since April 2004, and have shed almost three-quarters of their value since mid-2014. [O/R]
Nigerian Minister of State for Petroleum Resources Emmanuel Ibe Kachikwu told reporters at an energy conference in Abu Dhabi that there was a lot of push from various blocs within ‎OPEC for the need of a meeting.
"A couple of countries, I don't want to mention names," he said when asked if any had requested holding an emergency meeting.
Any meeting that would take place would be to review OPEC's position to see if there was any need to change its strategy, Kachikwu said.
Much will depend on the attitude of OPEC heavyweight Saudi Arabia, which has resisted calls for a cut in production to help boost prices.
"Saudi Arabia‎ has never held the position that it does not want to talk," Kachikwu said. "In fact, it was very supportive of a meeting before June, at the time when we held the December meeting, if (there was a) consensus call for it."
(Writing by David French; editing by Jason Neely)
Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.
More: OPEC Nigeria Oil Reuters

Oil just came close to hitting $30 a barrel

Oil just came close to hitting $30 a barrel

Crude oil is down on Tuesday afternoon, after tanking once again in early trade.
Early on Tuesday, West Texas Intermediate crude oil dropped 2.4% continuing a slide that on Monday saw the American benchmark fall below $31 per barrel for the first time since at least December 2003, more than 13 years ago.
At 7:20 a.m. GMT (2:20 a.m. ET) it was trading at $30.65, falling by nearly 2.5%. Crude then put in a strong recovery, and rallied back above $31.50, putting it in positive territory as of 11:40 a.m. GMT (6:40 a.m. ET).
It has since dropped once again, and is down by around 0.4% at 12:50 p.m. GMT (7:50 a.m. ET). Here's how crude looked early this morning:oilInvesting.com
And this is what it looks like now:
Screen Shot 2016 01 12 at 12.54.06Investing.com
Across the pond, Brent, the European benchmark, is also slightly in the red, and after popping back above $32 per barrel in late morning, it has dropped back to losses of just shy of 0.2%. At pixel time, it is trading at $31.82.
Screen Shot 2016 01 12 at 12.56.15Investing.com
In early trade, it briefly slipped below $31 per barrel for the first time in more than a decade, before recovering.
Tuesday's early falls followed a Monday session which saw the US benchmark slide more than 6% in trade.
Oil has started off 2016 in the worst possible fashion and as Business Insider's Myles Udland pointed out on Monday evening, a 5% daily slide in the oil price is starting to become pretty standard.
The plunge has confounded pretty much all predictions, and yesterday led analysts at Morgan Stanley to admit that the worst case scenario they predicted for oil actually turned out to be too optimistic.
Tuesday's continued price slide in oil comes against a backdrop of a rare good day in the Chinese equity markets. Stocks in both the CSI 300, and the China A50, ended the day in positive territory.

CHART: The overnight bank rate for China's offshore currency just exploded

CHART: The overnight bank rate for China's offshore currency just exploded

Borrowing costs for Chinese yuan traded offshore leapt to record levels on Tuesday as suspected intervention from the PBOC to support the currency drained liquidity from the financial system.
The overnight Hong Kong Interbank Offered Rate (HIBOR) to borrow offshore yuan fixed at 66.8% on Tuesday, the highest level on record.
The chart below tells the story.
“The market suspects that the PBOC is possibly using major state banks to directly drain yuan liquidity in offshore markets,” a dealer at an European bank in Shanghai told Reuters.
The dealer described the strength of the central bank’s actions as being of “nuclear-weapon” level strength.
“Its actions are comparable to steps taken by other central banks when they previously fought against international speculators, such as George Soros,” he said.

British industry just had another absolutely horrendous month

British industry just had another absolutely horrendous month

MSC Napoli container ship sinkingPeter Macdiarmid/Getty Images)
Industrial production in the UK is having a pretty horrible time of it right now.
According to the latest figures from the Office of National Statistics, released on Tuesday, industrial production fell by 0.7% in November 2015, although it grew by 0.9% from the same period in 2014.
Every major sector within UK industry fell, with the ONS noting that manufacturing, mining, and the electricity & gas industries performing the worst.
Manufacturing, a smaller subset of UK industry, also had a rubbish month, falling by 0.4%, driven down by the struggling pharmaceutical industry, which saw a 4.9% decline in output from October. Overall, manufacturing dropped by 1.2% year-on-year
In a tweet, economist Howard Archer said that the data was a "Blow to hopes that UK GDP growth saw any improvement in Q4 2015"
November's dreary industrial output continues on from where it left off in October, when manufacturing dropped by 0.4%, and industry as a whole only gained o.1%.

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