Sunday, January 24, 2016

Hot stock: Vallianz surges after roping in China investor

Hot stock: Vallianz surges after roping in China investor

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VALLIANZ Holdings saw its shares surge in early Monday trade following news that the offshore marine-related group has roped in CRRC Corp as a major investor.
Vallianz shares were trading around S$0.043 each at 9.04am, up 4.88 per cent, or 0.2 Singapore cent. About 10 million shares changed hands, making Vallianz the most actively trade stock on the Singapore Exchange.
Earlier, Vallianz said it has agreed to place 550 million new shares at S$0.043 each to two units of China's state-owned CRRC, which is said to be the world's largest supplier of rail transit equipment with the most complete product lines and leading technologies.
At S$0.043 each, the placement price is at a 4.6 per cent premium to the weighted average price of S$0.041 for trades done on Jan 14, the last full trading day prior to trading halt and signing of the subscription agreement.
After the placement, CRRC will become a major shareholder of Vallianz, with a 13.9 per cent stake.
Ling Yong Wah, CEO of Vallianz, has said the group views CRRC as a strategic technology partner which can enhance its vessel operations, while CRRC is hoping Vallianz can help it realise its plans to expand into the offshore and marine sector.

Greece's Tsipras vows to implement pension reform at anniversary rally

Greece's Tsipras vows to implement pension reform at anniversary rally

[ATHENS] Leftwing Greek Prime Minister Alexis Tsipras, at a rally on Sunday to mark a year in power, stood by a vow to overhaul the country's pension system despite fierce opposition.
Pension reform "must go ahead, it's necessary," Mr Tsipras said in a speech before around 4,000 supporters in an Athens stadium.
"The dilemma is about reforming the system or letting it collapse," he said.
Tsipras intends to put the reform bill to parliament early next month.
But he faces stiff opposition from leftists in his Syriza party and other and social groups which will be hit by bigger contributions to the pension pot.
In his speech, Mr Tsipras promised however to "exhaust every avenue of dialogue and flexibility" to help those affected most - small companies, the self-employed and farmers - and said the changes would be "fairer".
Mr Tsipras also reiterated his commitment not to reduce pensions from their current levels, saying they had "already been cut by 40 per cent" by previous governments under pressure from the European Union (EU) and International Monetary Fund (IMF), Greece's main creditors.
Syriza rode to power on January 25 2015 in an election where it won 36.3 per cent of the vote, thanks to a pledge to renegotiate the terms of Greece's international bailout.
There then followed months of tense negotiations in Brussels, and particular with Germany.
Eventually, Greece accepted its third bailout deal in five years, but had to swallow even harsher reforms.
Mr Tsipras was re-elected on September 20, and formed a second straight coalition with the nationalist Independent Greeks (ANEL) party.
The premier on Sunday lashed the rightwing opposition, which according to the opinion polls is enjoying a resurgence in power, and claimed that his struggle with Brussels had wrought lasting change in the EU.
"Europe is no longer the same," he said, referring to an anti-austerity swing in sentiment in Portugal, Spain and Italy.
AFP

IS releases video of 'Paris attackers'

IS releases video of 'Paris attackers'

[BEIRUT] The Islamic State group released a video on Sunday purporting to show nine jihadists behind the November Paris attacks that killed 130 people, in which they threaten "coalition" countries including Britain.
The video posted on jihadist websites is entitled "Kill wherever you find them", and shows four Belgians, three French citizens and two Iraqis said to be responsible for the attacks.
In it the jihadists, speaking in French and in Arabic, say their "message is addressed to all the countries taking part in the (US-led) coalition" that has been fighting IS in Syria and Iraq since September 2014.
The video also shows a picture of British Prime Minister David Cameron accompanied by the words in English: "Whoever stands in the ranks of kufr (unbelievers) will be a target for our swords." The video, produced by IS's Al-Hayat Media Centre, describes the nine jihadists as "lions" who "brought France to its knees".
The footage shows images of the coordinated Paris attacks as well as security operations by French special forces during the onslaught.
It also depicts the nine jihadists carrying out atrocities, including beheading and shooting people described as hostages.
AFP

Storm-hit US digs out as death toll rises to 22

Storm-hit US digs out as death toll rises to 22

[NEW YORK] The eastern United States dug out on Sunday from an historic blizzard that killed at least 22 people, but as New York slowly lumbered back to life in preparation for the work week, major travel disruptions persisted in Washington.
The storm - dubbed "Snowzilla" - walloped a dozen states from Friday into early Sunday, affecting an estimated 85 million residents who were told to stay indoors and off the roads for their own safety.
The 68cm of snow that fell in New York's Central Park was the second-highest accumulation in the city since records began in 1869, and more than 56cm paralyzed the capital Washington.
Near-record-breaking snowfall was recorded in other cities up and down the East Coast, with Philadelphia and Baltimore also on the receiving end of some of the worst that Mother Nature could fling at them.
But as the storm ended and temperatures rose Sunday, New York emerged from a total shutdown with a travel ban lifted. Roads were reopened throughout the city, on Long Island and in New Jersey.
Thousands of people flocked to parks, tobogganing, organising snowball fights and strapping on cross-country skis, as children delighted in a winter wonderland under glorious sunshine.
But as the death toll from storm-related deaths rose, authorities advised caution despite the picture postcard scenes outside.
"We urge all New Yorkers not to travel on our roads except when necessary, and to be extremely careful when driving," New York Mayor Bill de Blasio told a news conference.
"Our tireless sanitation workers are out in full force and we must give them space to clear the roads. If you go outside, use caution and stay alert for ice and cold temperatures," he added.
Broadway resumed shows, which were canceled on Saturday, and museums reopened in New York, as snow plows quickly cleared the main avenues and temperatures hovered at about 0 deg C.
Jessica Edwards, a filmmaker from Canada, joined in the fun, pulling four-year-old daughter Hazel down a hill in a sled in a New York park.
"Oh my God, she's so excited - we left the house this morning and we packed a bunch of stuff to make a snowman," she told AFP.
In Washington, enthusiasts organised a Star Wars-themed snowball fight among mostly young adults in the Dupont Circle neighbourhood.
"After being locked in for a couple of days, it's fun," said 33-year-old participant Laura Lorenzo.
Forecasters raised concerns about melting snow, raising the specter of flooding and dangerous black ice, particularly in coastal towns.
Virginia, Maryland, Pennsylvania and New Jersey were the hardest-hit areas outside New York and Washington. "A few locations came close to, or surpassed all-time one-day and two-day snow records," said the National Weather Service.
The fatalities occurred in Arkansas, Delaware, Kentucky, Maryland, New York, North Carolina, Ohio and Virginia, while hundreds of thousands were left without power at the height of the storm.
Despite the rising temperatures, thousands of air passengers remained stranded, and in Washington, public schools were to remain closed and only limited public transport to resume Monday.
Nearly 3,500 domestic and international flights were canceled on Sunday, FlightAware said, with Reagan National and Dulles International airports in the US capital to remain closed Sunday.
Washington's public transit system announced that limited rail and bus service would resume on Monday, and said Metro fares would be waived as trains would begin running only every 20-25 minutes.
The House of Representatives opted to remain out of session for the coming week due to the severity of the winter storm - with no votes set until February 1.
In New York, Mr De Blasio called for extra emergency snow labourers to come forward to remove snow and ice from bus stops, crosswalks and fire hydrants for pay starting at US$13.50 an hour.
"This was one of the worst storms to ever hit New York City and we need all hands on deck to dig us out," he said.
"People want to start to go outside and start shoveling and clearing their walks and driveways," said New Jersey Governor Chris Christie, a Republican presidential contender who left the campaign trail to oversee the emergency response in his state.
"This is very heavy snow so I ask that they please be careful as they clean up their own property today or their businesses." Many of the storm-related deaths were people who suffered heart attacks while shoveling.
Nearly 150,000 power outages were reported in North Carolina alone at the height of the storm, emergency officials said. On Sunday, that number had been whittled down to about 50,000.
Snow and sleet even buffeted the southern state of Tennessee - unusual for the region.
AF
P

Johnson Controls in advanced talks to acquire Tyco: source

Johnson Controls in advanced talks to acquire Tyco: source

[NEW YORK] Johnson Controls Inc, a US manufacturer of car batteries and heating and ventilation equipment, is in advanced talks to buy fire protection and security company Tyco International Plc, people familiar with the matter said.
A deal between Johnson Controls and Tyco, which have market capitalisations of US$23 billion and US$13 billion respectively, would provide the clearest indication yet that the recent market volatility has not derailed strategic mergers from advancing.
Terms of the potential deal could not immediately be learned.
The sources, who asked not to be identified because the negotiations are confidential, cautioned that no agreement was certain. The Wall Street Journal, which first reported on the talks, said a deal could be announced as early as Monday.
Johnson Controls and Tyco did not respond to requests for comment.
The deal would come as Milwaukee, Wisconsin-based Johnson Controls was preparing to spin off its automotive seating and interiors business, to focus on its building efficiency and automotive battery operations.
Based in Cork, Ireland, Tyco provides more than 3 million customers globally with fire protection and security products and services.
REUTERS

Saudi Aramco may open potential IPO to international investors

Saudi Aramco may open potential IPO to international investors

[KUWAIT] Saudi Arabian Oil Co may open a potential share offering to international investors and confirmed that the kingdom's crude reserves will not be put up for sale.
Saudi Aramco, as the world's largest oil business is known, is still considering "all options" in any future public offering, including the sale of shares internationally, Chairman Khalid Al-Falihsaid in an interview on Al Arabiya television. The company isn't considering selling its oil reserves, he said.
"What will be offered is the economic value of Saudi Aramco and not its oil reserves," Al-Falih said in the interview in Davos, Switzerland. "The oil reserves belong to the state. Therefore, we will offer the ability of the company to produce from those reserves." Saudi Aramco has announced it is studying options for a share sale. While one route is a full initial public offering, another is to list some of its subsidiaries, the company said in a statement earlier this month. Aramco pumps all of Saudi Arabia's crude oil, with production at 10.25 million barrels a day in December.
Saudi Arabia sees crude oil prices recovering this year even if inventories remain high, Al-Falih said. Oil demand grew last year almost twice as fast as in 2014 and will keep rising at a rate of at least 1.2 million barrels a day this year, he said.
The kingdom isn't targeting higher-cost shale oil producers by keeping its production high, and it wants to see a market in which supply matches demand, he said.
"We are not targeting shale oil producers at all," Al-Falih said in the interview. "We want low-cost oil producers like Saudi Arabia to produce to a balanced market." Saudi Arabia raised prices for feedstock to petrochemical makers this year as part of reforms to reduce state spending and to narrow the fiscal deficit. Al-Falih said that even with the increase, local industries still pay lower feedstock prices than their international peers.
"When we raised the feedstock prices, we knew that the margin for producers will be squeezed but we looked at it as an incentive for them to enhance their efficiency," he said.
Saudi Arabia is looking into privatization in all industries, and the government is moving forward with plans to sell shares in the Saudi Grain Organization, he said. Saudi Arabian Airlines and Saudi Railways Organization are next on the list of state companies up for sale, "when they become ready for this step," he said. The health ministry is considering putting all public hospitals under the management of independent companies and turning some hospitals into non-profit foundations, said Al-Falih, who is also minister of health.
BLOOMBERG

Egypt said to get US$20b of oil products from Saudi Arabia

Egypt said to get US$20b of oil products from Saudi Arabia

[CAIRO] Egypt will get about US$20 billion in oil products from Saudi Arabia over five years, a government official said, marking the kingdom's latest display of support for its struggling North African ally.
The deal grants Egypt easy payment terms, said the official, who asked not to be named because the agreement details will be made public at a ceremony attended by both heads of state. Saudi Arabia's oil ministry couldn't immediately be reached for comment.
The two countries also finalized a 3-month oil deal worth US$1.5 billion that both sides were negotiating earlier this month, the official said. That deal is part of the 5-year agreement.
The agreement is the latest in a series of Saudi pledges of economic support for Egypt, even as the oil-rich kingdom cuts subsidies to shore up its finances. Saudi Arabia, along with Kuwait and the UAE, poured tens of billions into Egypt to support the regime following the 2013 military-led ouster of Islamist President Mohamed Mursi.
In January, Saudi Arabia promised to invest 30 billion riyals (S$11.4 billion) in Egypt through its public and sovereign funds. It also agreed to provide US$1.5 billion to develop the Sinai peninsula, and granted US$200 million of loans for small- and medium-sized enterprises.
BLOOMBERG

Gold is back in fashion after US$15t global equity decline

Gold is back in fashion after US$15t global equity decline

[NEW YORK] The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety.
Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most- bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by US$3 billion in 2016.
Bullion has seen a revival of its appeal as a haven after being mainly ignored last year in the face of the Paris terror attacks in November and the Greek bailout negotiations in July. This time around, concerns about global markets will support the metal, Citigroup Inc analysts led by Ed Morse said last week as they raised their 2016 price forecast.
"People have become complacent about risks, whether it's macroeconomic and geopolitical," said George Milling-Stanley, the Boston-based head of gold investments at State Street Global Advisors, which oversees US$2.4 trillion. "What's out of fashion may be coming back. That atmosphere of people feeling completely calm and untroubled, I think, is starting to go away. Gold is a very good risk-off trade, and I think people are starting to look very, very carefully at the risky positions that they have on a number of other markets." Futures gained 3.4 per cent in January to US$1,096.30 an ounce on the Comex in New York, heading for the biggest monthly gain since August. The net-long position in gold futures and options reached 1,934 contracts in the week ended Jan 19, according to US Commodity Futures Trading Commission data released three days later. That's up from 902 a week earlier and compares with a record net-short holding of 24,263 held at the end of last year.
Investors poured US$926 million into ETFs backed by precious metals so far in January, the latest data compiled by Bloomberg show. That's on pace for the biggest monthly expansion in a year. Holdings in global gold ETPs reached almost 1,500 metric tons last week. That's the highest since November.
Gold fell 10 per cent last year as investors awaited the first increase in benchmark interest rate by the Federal Reserve since 2006, which finally came in December. Fed Bank of Boston President Eric Rosengren said this month that the central bank's projected path for more policy tightening is at risk, citing falling estimates for US economic growth. Higher rates curb the allure of gold as an alternative investment because it doesn't pay yields.
The attraction to gold this month "could partly have to do with re-balancing investors' portfolio," said Kevin Caron, a Florham Park, New Jersey-based market strategist and portfolio manager who helps oversee US$180 billion at Stifel Nicolaus & Co. "An entry price here nearer to US$1,000 than US$2,000 makes a lot more sense." Gold is climbing on concerns about further contagion from China, volatile stock markets and tensions in the Middle East, Citigroup said in a Jan 19 report. The bank raised its 2016 outlook by 7.5 per cent to US$1,070. The turmoil will support prices this quarter, before a stronger dollar ends the rally later in the year, the analysts said.
Gold reached a five-year low in December as the dollar strengthened and US inflation stayed stagnant, cutting demand for the metal as a store of value. The cost of living in the US unexpectedly dropped in December, led by a slump in commodities. China's slowdown is combining with lower oil prices and competitive currency devaluations to increase the risk of deflation around the world, billionaire investor George Soros said in a Bloomberg Television interview last week.
"You're getting a short-term bounce based on the sell-off in oil and stocks, but the underlying fundamentals, the inflation expectations haven't changed," said Rob Haworth, a Seattle-based senior investment strategist at US Bank Wealth Management, which oversees US$128 billion of assets.
BLOOMBERG

Japan's Dec exports fall 8.0% year on year, down for 3rd month

Japan's Dec exports fall 8.0% year on year, down for 3rd month

[TOKYO] Japan's exports fell 8.0 per cent in December from a year earlier, down for the third straight month, Ministry of Finance data showed on Monday, in a sign the slowdown in China's economy and emerging markets is taking a toll on external demand.
The decline compares with economists' median estimate for a 6.8 per cent drop in a Reuters poll. It followed a 3.3 per cent decrease in November.
Imports fell 18.0 per cent in December, versus the median forecast for a 16.4 per cent decline, bringing the trade balance to a surplus of 140.2 billion yen (S$1.7 billion). Economists expected a surplus of 100.0 billion yen.
REUTERS

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