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)
OECD head says sees further cut to global growth forecasts
The Organisation for Economic Co-operation and Development intends to cut its forecasts for global growth with significant cuts to its outlook for some regions, the secretary general of the Paris-based think tank said on Monday.
PHOTO: AFP
[DUBLIN] The Organisation for Economic Co-operation and Development intends to cut its forecasts for global growth with significant cuts to its outlook for some regions, the secretary general of the Paris-based think tank said on Monday.
In June, the OECD cut its 2015 growth forecast to 3.1 per cent from the 3.7 pe rcent it was forecasting last November. It is due to release new forecasts on Tuesday. "We are going to put out numbers with maybe a bit of a cut in terms of the outlook, and in some regions of the world, a little bit more than a small cut," OECD Secretary-General Angel Gurria said in Dublin at a briefing on the Irish economy.
China vows to loosen market access "negative list"
China's economy must open wider to the world to fuel national growth, President Xi Jinping said on Tuesday, as the country's reformers vowed to gradually loosen a "negative list" regulating foreign market access.
PHOTO: BLOOMBERG
[BEIJING] China's economy must open wider to the world to fuel national growth, President Xi Jinping said on Tuesday, as the country's reformers vowed to gradually loosen a "negative list" regulating foreign market access.
China has repeatedly pledged to slacken restrictions on its manufacturing and service sectors as it tries to improve inefficient state-owned firms by adopting market-friendly policies to stave off slowing growth.
The world's second-largest economy, which grew 7 per cent in the first half from a year earlier, is headed for its slowest economic expansion in 25 years in 2015.
"China should make unswerving efforts to attract foreign investment and foreign technology, and improve the mechanism for the country's opening up," the official Xinhua news agency cited Mr Xi as saying at a meeting of the Central Leading Group for Deepening Overall Reform.
"Implementing a market access negative list system has great significance in releasing the decisive role of the market in allocating resources and further developing the role of government, and in establishing a commercial environment based on rule of law and building a new open-style economic system," Xinhua said, citing a statement from the reform group.
"The country will gain experience and gradually improve the list through pilot programs," the news agency said, citing the statement.
Business groups have expressed only tepid approval of such piecemeal pilot programs, arguing that many sectors currently off limits to foreign investors should be opened up nationwide instead of in select regions or zones.
Regulators issued a negative list of prohibited and restricted industries for foreign investors in March, though business lobbies have said it is too broad.
The list, issued jointly by the National Development and Reform Commission and the Commerce Ministry left prohibitions on foreign investment in 36 sectors, while 38 sectors were restricted.
China's government plans to reform state-owned enterprises but has been reluctant to cede too much control over industries it deems central to national interests.
Australia: Shares hit 3-week low as prime minister change falls flat
Australian shares tumbled to a three-week low on Tuesday as the emergence of Malcolm Turnbull as prime minister elect failed to inspire investors, and falling commodity prices sent resources lower.
PHOTO: REUTERS
[SYDNEY] Australian shares tumbled to a three-week low on Tuesday as the emergence of Malcolm Turnbull as prime minister elect failed to inspire investors, and falling commodity prices sent resources lower.
The changeover of futures contracts set to expire on Sept 15 also generated heavy trading in those derivatives, draining volume from the equities market and exaggerating the fall.
The S&P/ASX 200 index followed overseas markets by falling 1.5 per cent or 78.1 points to 5,018.4, its lowest finish since hitting a two-year low on Aug. 24. The benchmark is down 11 per cent since the start of August.
New Zealand's benchmark NZX 50 index fell 13.5 points or 0.2 per cent to finish the session at 5,652.4.
SINGAPORE'S total employment in the second quarter of 2015 grew by 9,700 workers, after a contraction of 6,100 in the previous quarter. This brought total employment to 3,627,500 in June 2015, 2.2 per cent higher than a year ago. This year-on-year growth in total employment was 2.7 per cent in March 2015.
In its latest labour market report, the Ministry of Manpower (MOM) said that Singapore's total employment for the first half of 2015 fell by 1,000. This figure, which excludes foreign domestic workers (FDWs), is a large decline from the growth of 52,200 in the first half of 2014.
Local employment declined by 8,900 in the first half of 2015. This largely reflected the exit of young casual workers from the workforce after the entry of a large number of them in the second half of 2014. There was also continued growth in the employment of older local workers, said MOM.
Foreign employment growth moderated to 8,000, excluding FDWs, in the first half of 2015, registering the lowest half-yearly growth since 2009. The services sector accounted for most of the growth, with work-permit holders making up the largest proportion of the growth.
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MOM said the moderation in total employment growth took place amid slower economic growth. The Singapore economy grew by 2.3 per cent year-on-year in the first half of 2015, slower than the 3.4 per cent in the same period last year.
BOJ stands pat on policy but says slowing emerging markets adding to pain
The Bank of Japan said on Tuesday that slowing emerging market demand was putting further strains on the economy but held off on expanding stimulus, preserving its limited policy options in case an expected US rate hike sparks more global volatility.
PHOTO: BLOOMBERG
[TOKYO] The Bank of Japan said on Tuesday that slowing emerging market demand was putting further strains on the economy but held off on expanding stimulus, preserving its limited policy options in case an expected US rate hike sparks more global volatility.
BOJ Governor Haruhiko Kuroda maintained his optimism on Japan's economic outlook, saying that domestic demand remained firm despite external headwinds such as China's slowdown.
"The slowdown in emerging economies is already affecting Japan's exports and output. Even so, Japan's economy continues to recover moderately," Mr Kuroda told a news conference.
"Corporate revenues are at record-high levels, underpinning a steady improvement in job and income conditions," he said.
A run of poor data, including weak exports, feeble wage growth and soft household spending, has ramped up pressure on the BOJ to expand its already massive stimulus programme to reflate the economy, which contracted in the second quarter.
In a possible sign that its conviction about a solid third-quarter recovery may be wavering, the BOJ cut its assessment on exports and output to say they were "more or less flat." It also offered a bleaker view on overseas economies, warning that emerging markets were slowing.
"Japan's economy continues to recover moderately, although exports and output are being affected by the slowdown in emerging economies," it said in a statement after the policy meeting.
As widely expected, the BOJ maintained its pledge to increase base money at an annual pace of 80 trillion yen (S$938.7 billion) via aggressive asset purchases such as government bonds and some riskier assets such as exchange-traded equity funds.
In a sharp downgrade of views from just a few months ago, analysts now expect only a feeble economic rebound in the current quarter as China's slowdown hits exports, heightening market expectations that the BOJ may be forced to act again later this year.
"We're not in a recession, but the economy clearly lacks strength and prices are undershooting the BOJ's price target by a lot," said Hiroshi Miyazaki, senior economist, Mitsubishi UFJ Morgan Stanley Securities.
"The BOJ could ease again in early October, to avoid falling behind the curve," he said.
In a sign that cooling demand in China and elsewhere in Asia is taking a toll, a Reuters poll showed Japanese manufacturers'confidence slumped the most in a year in September.
Fears of a China-led slowdown prompted heavy selling in global markets earlier this month by investors already worried about whether the recovering US economy can withstand an interest rate hike which could come as early as this week.
A shift in the BOJ board's composition means if Kuroda were to pull the trigger, he could count on more votes than last October, when his unexpected proposal to expand stimulus won by a razor-thin margin.
But many BOJ policymakers are wary of acting now, concerned about the risk of diminishing returns if they expand the huge asset buying programme, which is already drying up bond market liquidity.
Oil was up in Asia Tuesday but prices remain hobbled by weak demand and excess supplies.
PHOTO: REUTERS
[SINGAPORE] Oil was up in Asia Tuesday but prices remain hobbled by weak demand and excess supplies.
US benchmark West Texas Intermediate for delivery in October climbed 24 cents to US$44.24, while Brent crude for October clawed back from earlier losses to rise one cent to US$46.31 in afternoon trade.
Expectations that US crude oil inventories expanded for a third week and news that the Opec cartel has slashed its demand growth forecast for next year are keeping a lid on any price rally, analysts said.
Bloomberg News said it expects US crude stockpiles to have risen by 1.75 million barrels in the week to September 4.
The US Energy Information Administration (EIA) will release Wednesday the official stockpiles data, a gauge of demand in the world's top oil consuming nation.
"Prices are unable to make much headway as the market expects US crude stockpiles to expand for the third straight week ahead of the EIA report," said Bernard Aw, a Singapore-based market strategist at IG Markets.
The Organization of the Petroleum Exporting Countries on Monday cut its 2016 forecast for global demand "due to the projected slower economic momentum in Latin America and China".
The cartel said demand would grow by 1.29 million barrels per day to 94.08 million barrels a day next year, 50,000 barrels less than its previous estimate.
Traders meanwhile are also watching a US central bank meeting this week to see whether policymakers would raise interest rates for the first time since 2006.
Analysts say that a hike in the zero-level benchmark rate would likely push the dollar higher, making dollar-priced crude oil more expensive and potentially further damping demand.
China: Stocks post biggest two-day loss in three weeks on economy
PHOTO: REUTERS
[SHANGHAI] China's stocks fell for the steepest two-day loss in three weeks amid concern investors will continue to pull funds from the nation's equities as data show a deepening economic slowdown.
The Shanghai Composite Index dropped 2.6 per cent to 3,032.68 at 1:06 pm, led by material and industrial shares. The net value of mainland equity funds plunged 44 per cent last month, while traders withdrew US$15 million from the biggest US exchange-traded fund tracking mainland stocks in the five days through Sept 11, according to data compiled by Bloomberg. Yuan positions at the central bank and financial institutions fell by the most on record in August, a sign that policy makers stepped up intervention to support the currency.
"The economy has not shown signs of a pick-up after a series of cuts in interest rates and reserve requirements, while expectations about yuan depreciation are still there," said Zhang Haidong, chief strategist at Jinkuang Investment Management in Shanghai. "Yuan-denominated assets face downward pressure. The market is still weak." The Shanghai Composite plunged 2.7 per cent on Monday after weekend data showed industrial output missed economists' forecasts and investment in the first eight months increased at the slowest pace since 2000. The benchmark gauge has tumbled 41 percent from its June high to erase US$5 trillion in value on mainland bourses as leveraged investors fled amid concerns valuations weren't justified given the weakening economy. Margin debt in Shanghai slumped to a nine-month low on Monday.
The Shanghai index may fall to 2,700 as stocks are still expensive, said Francis Cheung, CLSA head of China and Hong Kong strategy, said in a briefing on Tuesday. The gauge is valued at 11.9 times 12-month projected earnings, compared with the five-year average multiple of 10.3, Bloomberg data show. Trading volumes in Shanghai were 46 per cent below the 30-day average.
The CSI 300 Index declined 2.9 per cent. Hong Kong's Hang Seng China Enterprises Index was little changed, while the Hang Seng Index retreated 0.3 per cent.
Gauges of technology and material stocks on the CSI 300 slumped more than 4 per cent for the biggest declines among industry groups. Searainbow Holding Corp. and Yunnan Copper Co. both tumbled by the 10 per cent daily limit.
The 569 open-ended mainland Chinese stock funds had combined net asset values of 724.8 billion yuan (S159.7 billion) in August, compared with 1.3 trillion in July, according to data posted on the website of the Asset Management Association of China on Monday. The industry body didn't explain the reason for the decline.
"After the recent slump in equity prices it is normal that some funds have redemptions, particularly mutual funds, which are mostly sold to retail investors in the mainland," said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. in Shanghai. "Retail investors tend to be slightly late compared to institutional investors because of less investment discipline. There is also less appetite by investors." Margin traders reduced holdings of shares purchased with borrowed money on Monday, with the outstanding balance of margin debt on the Shanghai Stock Exchange falling to a nine-month low of 599.9 billion yuan. The China Securities Regulatory Commission cleared 3,255 non- brokerage margin funding accounts, or 61 per cent of the total, spokesman Deng Ge said on the regulator's website.
The total for the People's Bank of China dropped by 318.4 billion yuan from the end of July, according to a report Monday on what the monetary authority calls positions for foreign exchange purchases. Yuan positions at Chinese financial institutions accumulated from foreign-exchange purchases tumbled 723.8 billion yuan, the data showed.
