We need to find a fairer way of providing Goods and Services to the rest of the people on Earth.Cryptocurrencies and/or Gold Standard of money....maybe the answer to fight hyperinflation caused by too much printing of paper/fiat currencies by Governments and Central Banks all over the World. (https://nomorefiatmoneyplease.blogspot.com)
Online retailer Amazon.com Inc plans to release a US$50 tablet in time for the holiday season, the Wall Street Journal reported, citing people familiar with the matter.
PHOTO: REUTERS
[BENGALURU] Online retailer Amazon.com Inc plans to release a US$50 tablet in time for the holiday season, the Wall Street Journal reported, citing people familiar with the matter.
The 6-inch screen tablet comes with a mono speaker and is priced much lower than Amazon's Fire tablet, the cheapest variant of which is sold at US$99.
The company was not immediately available for comment.
Amazon also plans to release 8-inch and 10-inch screen tablets, the report said.
While other Amazon Fire tablets show advertisements as screen savers, it was not clear if the new 6-inch tablet's cost included ads, according to the report.
Moody's Investors Services has cut growth projections for many Asia-Pacific countries given subdued global growth, weak demand from China and a commodities slump, all of which are weighing on export revenue, growth and fiscal balances.
PHOTO: REUTERS
MOODY'S Investors Services has cut growth projections for many Asia-Pacific countries given subdued global growth, weak demand from China and a commodities slump, all of which are weighing on export revenue, growth and fiscal balances.
Nevertheless, the sovereign credit profiles of Asia-Pac countries are resilient to lower growth as most credit indicators namely government debt and balance of payments ratios remain in line with its assumptions and within the range for each sovereign's peer group, said Moody's in a statement.
In the agency's latest report "Asia Pacific Sovereigns: Credit Profiles Resilient to Slowing Exports, Subdued Domestic Demand", Moody's said that domestic demand in most Asia-Pac countries was unlikely to offset the effect of slower global growth, partly because an anticipated investment boost from government infrastructure spending has not materialised in some cases.
In addition, households are saving more of their income gains from lower energy costs than previously expected, despite monetary easing by central banks in the region.
"Market volatility and political risk are also weighing on confidence," it added.
Although the growth in Asia is slowing from high levels, the report said that on average, it was still stronger than most other regions.
The risk of deflation at this point is minimal, while lower oil prices have supported current account and fiscal positions in many Asian countries, offsetting the risks from slower growth and external financial volatility.
Moody's expects the pressures on exchange rates and reserves in many Asian countries to continue as international markets respond to slower emerging market growth and the looming rate hike in the US.
"Nevertheless, the negative sovereign credit implications of such pressures are limited by currency flexibility, and reserve levels that are significantly higher in Asia than during the late 90s," it added.
Ringgit falls for fifth day on lower oil, China growth concern
Malaysia's ringgit fell for the fifth day, the longest run of losses in a month, as an overnight decline in energy prices and an economic slowdown in China damped demand for the oil-exporting nation's assets.
PHOTO: BLOOMBERG
[KUALA LUMPUR] Malaysia's ringgit fell for the fifth day, the longest run of losses in a month, as an overnight decline in energy prices and an economic slowdown in China damped demand for the oil-exporting nation's assets.
Brent crude slumped 4 per cent on Monday, extending a decline that has contributed to a 20 per cent depreciation in the ringgit this year in Asia's worst performance. China, Malaysia's biggest overseas market, will later Tuesday report that exports contracted for a second month in August, according to the median estimate in a Bloomberg survey of economists.
"There are uncertainties over China's growth, declining oil prices, US Fed rate normalisation, global risk aversion," said Leong Sook Mei, Southeast Asia head of global markets research at Bank of Tokyo-Mitsubishi UFJ in Singapore. "It's a given that, in this kind of environment, Asian currencies will probably be very weak." The ringgit declined 0.9 per cent to 4.3672 a dollar as of 9:31 am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. The currency, which has lost 4.6 per cent in the past five days, earlier fell to 4.3730, the lowest since January 1998.
A majority of more than 150 market participants surveyed by Moody's Investors Service expect the ringgit and oil prices to stabilise, with 44 per cent saying they expect the currency to trade between 4 and 4.50 to a dollar, according to a statement from the rating company issued on Tuesday.
Global funds reduced holdings of Malaysian government bonds by 4.3 per cent to 166.1 billion ringgit (S$54.3 billion) in August from July, the lowest level in five months, according to central bank data.
Sovereign bonds retreated, with the 10-year yield rising four basis points to 4.28 per cent, according to prices from Bursa Malaysia.
Australia business conditions improve in Aug but confidence falters on China: survey
National Australia Bank's monthly survey of more than 500 firms showed its index of business conditions rose 5 points to +11 in August. In contrast, its measure of business confidence dipped 3 points to +1 - its lowest since mid-2013.
PHOTO: REUTERS
[SYDNEY] Australian business conditions improved in August as both trading and profitability grew, yet confidence took a hit amid growing worries about the health of China's economy, a survey showed on Tuesday showed.
National Australia Bank's monthly survey of more than 500 firms showed its index of business conditions rose 5 points to +11 in August. In contrast, its measure of business confidence dipped 3 points to +1 - its lowest since mid-2013.
"While confidence tends to track conditions quite closely, recent financial market ructions and China growth concerns appear to have had an unnerving effect on business - albeit not enough to send confidence into negative territory," said NAB's chief economist Alan Oster.
Overall, Mr Oster said the survey results added to mounting evidence that a weaker Australian dollar and record low interest rates were having "the desired effect and helping to offset the weakness in mining".
The survey's index of sales jumped to +20, from +12, while profitability rose five points to +12.
Forward orders climbed two points to +5, but disappointingly, the index of employment stayed in negative territory at -1.
The capital expenditure index was unchanged at +6, remaining just above its long-run average.
Mr Oster said trend growth pointed to a stronger expansion of non-mining business investment than what official data currently indicates.
This is likely to be welcomed by the Reserve Bank of Australia, which is counting on a pick up in spending by firms outside of the mining sector.
The survey offered little signs of inflationary pressure, with labour costs still relatively subdued.
South Korea won slips to 5-year low after corporate merger deal
The South Korean won slipped to a five-year low against the dollar on Tuesday morning, weighed down by expectations that dollar demand will rise following Tesco's sales of its largest overseas unit, Homeplus, in South Korea.
PHOTO: REUTERS
[SEOUL] The South Korean won slipped to a five-year low against the dollar on Tuesday morning, weighed down by expectations that dollar demand will rise following Tesco's sales of its largest overseas unit, Homeplus, in South Korea.
The won fell as low as 1,028.8 per dollar, the weakest intraday level since July 22, 2010, and was seen at 1,208.6 per dollar, down 0.4 per cent, as of 0100 GMT.
Tesco is selling its South Korean arm to a group led by private equity firm MBK Partners for US$6.1 billion, it said on Monday.
Malaysia's 1MDB shortlists four parties for its power unit
Malaysian state fund 1Malaysia Development Bhd said it has shortlisted four parties for the final bidding stage in the sale of its power unit, Edra Global Energy Bhd.
PHOTO: BLOOMBERG
[KUALA LUMPUR] Malaysian state fund 1Malaysia Development Bhd said it has shortlisted four parties for the final bidding stage in the sale of its power unit, Edra Global Energy Bhd.
It did not identify the bidders.
The fund, whose advisory board is chaired by Prime Minister Najib Razak, also expects to shortlist preferred bidders for its Bandar Malaysia property project before the end of this week, it said in a statement late on Monday. "1MDB remains focused on implementation of its rationalisation plan and will issue further progress updates in due course," it added.
1MDB has been dogged by controversy over its US$11 billion in debt and is the subject of multiple investigations amid allegations of financial mismanagement.
Weak economic outlook and oversupply weigh on oil markets
US oil prices fell on Tuesday as the global economic outlook darkened further and cooperation between oil producing countries to curb oversupply looked unlikely, pulling US crude prices down around three percent in early Asian trading.
PHOTO: REUTERS
[SINGAPORE] US oil prices fell on Tuesday as the global economic outlook darkened further and cooperation between oil producing countries to curb oversupply looked unlikely, pulling US crude prices down around three percent in early Asian trading.
Japan's economy shrank an annualised 1.2 per cent in April-June, revised gross domestic product (GDP) data showed on Tuesday, despite ongoing government and central bank measures to support growth.
Asian shares looked set to struggle on Tuesday to defend the three-year trough hit last month as investors sought more signs of stability in China's slowing economy and volatile financial markets. "Oil prices are now expected to stay around current levels until the end of 2015, before rising to the mid to high 50s by the end of 2016," National Australia Bank said in its September commodities note to clients.
US crude benchmarks were down over 3 per cent from their previous close at 0025 GMT at US$44.66 per barrel, and although Brent futures firmed 40 cents in early trading to US$48.03 a barrel, the global benchmark was still down US$1.24 from its opening value on Monday.
Oil prices have fallen almost 60 per cent since June 2014 on a global supply glut, with prices seesawing in recent weeks as concerns about a slowing Chinese economy caused turmoil in global stock markets.
On the supply side, recent speculation that Russia might be willing to cooperate with the Organization of the Petroleum Exporting Countries (Opec) to curb output in support of prices were given a blow on Monday after the chief executive of Russian oil major Rosneft ruled out a Russian cut.
Opec is producing close to record volumes to squeeze out competition, especially from US shale producers, which have so far weathered the price plunges to keep pumping oil.
Move over Exxon, Russian drillers are oil world's top performers
At a time when the collapse in crude prices pushes Russia's economy into a recession, the nation's oil producers are managing to beat their western counterparts.
PHOTO: AFP
[LONDON] At a time when the collapse in crude prices pushes Russia's economy into a recession, the nation's oil producers are managing to beat their western counterparts.
On measures including cash flow, profit margins and share prices, OAO Rosneft, Lukoil PJSC- Russia's two largest oil producers - and OAO Gazprom Neft are performing better than Royal Dutch Shell Plc, BP Plc or Exxon Mobil Corp.
"When oil goes down, the western companies are hurt more than the Russian companies," said Maxim Edelson, a Senior Director at Fitch Ratings in Moscow. Because Russian tax rates adjust automatically to lower prices the nation's companies enjoy a buffer to the slump in crude while "a lot of the hit is taken by the government."
The oil industry is struggling to adapt after prices fell to the lowest level in six years amid a global supply glut. While energy producers have fallen more than any other group this year on the MSCI All-Country World Index, Russian companies have been the most resilient.
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Rosneft shares gained 2.9 per cent and Gazprom Neft added 0.3 per cent in London trading this year. Shell's B shares, the most widely traded, lost 28 per cent and BP 18 per cent.
Russia relies on oil and gas for about a half of its budget income, so the plunge in crude prices of more than 50 per cent in the past year has pushed the country into its first recession since 2009.
The faltering economy, combined with the effects of international sanctions over Russia's involvement in Ukraine, has weakened the ruble, benefiting Russian oil companies that earn dollars and pay costs in the local currency.
The tax and currency benefit this year means Rosneft and Lukoil will yield free cash flow at more than twice the rate of Shell and BP, according to Barclays Plc data. Russian producers are generating cash as if the price of oil were still US$100 a barrel rather than US$50, Goldman Sachs Group Inc said in a research note on Sept 1.
"Production costs in Russia are still among the lowest globally," because not so much advanced technology is applied to boost extraction as in other parts of the world, Philipp Chladek, a London-based oil-sector analyst with Bloomberg Intelligence, wrote in a Sept 2 report. "Rather than trying to increase the recovery rate in mature fields to keep the oil flowing, Russian companies can still tap new resources."
Rosneft has some of the industry's lowest costs, Chief Executive Officer Igor Sechin told reporters in Beijing on Thursday. The producer's capital expenditure of US$4.20 a barrel is just a sixth of the US$27 a barrel Exxon Mobil spends, according to a company presentation.
Almost all of the Russian oil companies with both production and refining had a pretax earnings margin - a measure of profitability - that was higher than their peers in Europe in the second quarter, Mr Chladek wrote.
While Russian oil companies' performance has been stronger than competitors, they are not immune to the effects of the price slump.
Rosneft and Lukoil's revenue dropped from a year earlier for three consecutive quarters. While Lukoil's production of oil and condensate rose 5.2 per cent in the first half, Rosneft's crude output fell 1.1 per cent as it cut spending in dollar terms. The nation's largest oil producer must service or refinance US$26 billion in debt from the second half of this year to the end of 2016 while international sanctions restrict its ability to access capital markets.
When asked about the future of oil prices, Mr Sechin declined to make a prediction. "Don't turn to me, go to some fortuneteller, because there are too many uncertainties," he said.
