SINGAPORE: The Ministry of Finance (MOF) is seeking public views on the initiatives that next year's government budget can include to enable sustained and inclusive growth for Singapore.
Launching its Budget 2010 Feedback Exercise on Monday, the ministry is also looking to engage the public on issues related to public spending.
The feedback exercise runs till February 12 next year. The public can offer their views through the Budget 2010 website, via SMS at 9-Speak-Up (9-77325-87), mail, phone or fax.
The government's feedback unit REACH and the MOF will also have dialogue sessions in December and January.
To promote greater awareness of Singapore's budget and public financing issues among youths, two inter-school events – Budget Debate and Budget Quiz – will be conducted early next year.
Source: channelnewsasia.com
Monday, November 30, 2009
Fianance Obstacle
Finance now threatens to become the main obstacle to securing a global climate deal at Copenhagen, writes the Guardian.
The Guardian has read confidential papers from the EU negotiating team indicating that the EU will not guarantee new additional funds to help developing countries to adapt to climate change.
Existing overseas aid might be channeled away from its original purpose to climate aid, and that would not be satisfactory for the developing countries, says Rob Bailey, Senior Policy Adviser of the NGO, Oxfam:
“No developing country will sign up to an agreement that could give them no extra money at all. The EU and other rich countries must provide new and additional finance, otherwise there will be no deal at all,” he says to the Guardian.
Developing countries want a minimum of 400 billion US dollars a year by 2020 for adaptation to climate change, the developed countries have proposed less than the half.
History shows that even though rich countries promise funding for climate adaptation it is not always going to happen. According to the Guardian, in 2001 the EU, Canada, Norway, Switzerland, Iceland and New Zealand promised 410 million dollars a year from 2005 to 2008 for that purpose. Barely 10 percent of the money has been delivered so far.
Source: cop15.dk
The Guardian has read confidential papers from the EU negotiating team indicating that the EU will not guarantee new additional funds to help developing countries to adapt to climate change.
Existing overseas aid might be channeled away from its original purpose to climate aid, and that would not be satisfactory for the developing countries, says Rob Bailey, Senior Policy Adviser of the NGO, Oxfam:
“No developing country will sign up to an agreement that could give them no extra money at all. The EU and other rich countries must provide new and additional finance, otherwise there will be no deal at all,” he says to the Guardian.
Developing countries want a minimum of 400 billion US dollars a year by 2020 for adaptation to climate change, the developed countries have proposed less than the half.
History shows that even though rich countries promise funding for climate adaptation it is not always going to happen. According to the Guardian, in 2001 the EU, Canada, Norway, Switzerland, Iceland and New Zealand promised 410 million dollars a year from 2005 to 2008 for that purpose. Barely 10 percent of the money has been delivered so far.
Source: cop15.dk
Korean Stocks in hot streak despite Dubai debt
SEOUL, Nov 30 (Reuters) - Stocks on the move on Monday include:
As of 0059 GMT, the main KOSPI was up 2.17 percent at 1,557.58 points.
The index opened up 1.52 percent at 1,547.65 points.
**WOORI FINANCE JUMPS AS DUBAI WORRIES EASE**
Shares in Woori Finance Holdings ( WF - news - people ) jumped on Monday as Dubai debt fears eased, boosting sentiment towards the financial holding company of Woori Bank, which has exposure to Dubai.
'The primary reasons for Woori's rebound is that it had tumbled the most on Friday among key banking issues, due to its Dubai exposure,' said Ku Yong-uk, a market analyst at Daewoo Securities.
'Stocks are recovering as earlier fears have eased a bit,' Ku added.
A Woori Bank spokesman said that the bank's direct exposure to Dubai was about $7.4 million.
Shares in Woori Finance rallied 7.52 percent as of 0110 GMT.
0110 GMT
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS KOREA HOT/
(jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Neither the Subscriber nor Thomson Reuters warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by Thomson Reuters and its third party content providers for your personal information only, and neither Thomson Reuters nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
Source: forbes.com
As of 0059 GMT, the main KOSPI was up 2.17 percent at 1,557.58 points.
The index opened up 1.52 percent at 1,547.65 points.
**WOORI FINANCE JUMPS AS DUBAI WORRIES EASE**
Shares in Woori Finance Holdings ( WF - news - people ) jumped on Monday as Dubai debt fears eased, boosting sentiment towards the financial holding company of Woori Bank, which has exposure to Dubai.
'The primary reasons for Woori's rebound is that it had tumbled the most on Friday among key banking issues, due to its Dubai exposure,' said Ku Yong-uk, a market analyst at Daewoo Securities.
'Stocks are recovering as earlier fears have eased a bit,' Ku added.
A Woori Bank spokesman said that the bank's direct exposure to Dubai was about $7.4 million.
Shares in Woori Finance rallied 7.52 percent as of 0110 GMT.
0110 GMT
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS KOREA HOT/
(jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Neither the Subscriber nor Thomson Reuters warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by Thomson Reuters and its third party content providers for your personal information only, and neither Thomson Reuters nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
Source: forbes.com
Thursday, November 26, 2009
Rising Yen harmful to Japanese economy - Finance Minister
TOKYO — The yen's sharp rise is harmful to Japan's export-led economy, the finance minister said Friday as the greenback traded around 85 yen, its lowest level since the mid-1990s.
Finance Minister Hirohisa Fujii did not signal Tokyo planned to immediately intervene in currency markets, something it last did in March 2004.
Fujii said the yen's rapid rise was one-sided and "harmful" to the economy and said the government was closely watching the currency fluctuations.
"We will take appropriate action toward disorderly movements," he said.
The dollar briefly dipped below 85 yen in early Asian trade, then bounced back and was changing hands at 85.88 yen in Tokyo at around 9:45 am (0045 GMT).
Fujii said Japan would have "discussion with the US and European financial authorities" as necessary, according to Jiji Press news agency.
Japan's economy is crawling out of a deep recession on rebounding exports but a stronger yen threatens the competitiveness of Japanese exporters.
Source: google.com
Finance Minister Hirohisa Fujii did not signal Tokyo planned to immediately intervene in currency markets, something it last did in March 2004.
Fujii said the yen's rapid rise was one-sided and "harmful" to the economy and said the government was closely watching the currency fluctuations.
"We will take appropriate action toward disorderly movements," he said.
The dollar briefly dipped below 85 yen in early Asian trade, then bounced back and was changing hands at 85.88 yen in Tokyo at around 9:45 am (0045 GMT).
Fujii said Japan would have "discussion with the US and European financial authorities" as necessary, according to Jiji Press news agency.
Japan's economy is crawling out of a deep recession on rebounding exports but a stronger yen threatens the competitiveness of Japanese exporters.
Source: google.com
Dubai's debts affects the country's recovery.
SEPTEMBER WAS an important month for Dubai, as schools reopened and the city started counting how many of its expatriates, stung by the global financial meltdown, had left.
To everyone’s surprise the classrooms were not empty and the exit was not as dramatic as expected.
For many residents, the city state might have been burdened by an $80 billion (€53.5 billion) debt mountain, but with a diversified economy and a more liberal culture than many of its neighbours, it remained the place to be.
The economic slowdown had even enhanced the lifestyle; it meant less traffic and fewer construction projects.
However negative the sentiment today, the rise of the emirate, and its claim to be the region’s business centre, had a convincing foundation.
Analysts pointed to lingering concerns about the real estate market but confidence was returning. Passenger numbers at the airport showed double-digit growth in the past five months and hotels had been busier, though occupancy rates remained down on last year.
“As the region’s only provider of world-class services, Dubai should . . . see export demand strengthen as activity strengthens elsewhere,” HSBC said in an October report.
But Wednesday’s announcement of a debt standstill at Dubai World, the government flagship property holding company, has raised questions about the city’s recovery.
Much of the optimistic business sentiment in recent months had rested on the assumption that Dubai was getting its house in order and would meet debt obligations. “While we have seen some improvement in the [United Arab Emirates’] confidence since mid-2009, rescheduling of Dubai World’s debt will provide a setback to sentiment,” said Monica Malik, economist at investment bank EFG-Hermes in Dubai.
Though she still expected to see a gradual improvement in Dubai’s economy over the next year, she added that, given “the high level of leverage by both individuals and corporates and exposure to the property sector, the UAE will have one of the weakest non-oil economic outlooks in the region”.
Dubai does not consolidate the finances of its various entities, and data is difficult to come by, a source of frustration for analysts. Statistics are often compiled for the whole UAE and not for Dubai alone.
According to a prospectus issued to investors last month, nominal gross domestic product (GDP) growth fell to 18 per cent in 2008 from 27.4 per cent the previous year. Many economists expect the UAE economy to have contracted this year.
It is the debt burden that has raised the most concern about Dubai’s future. After the heyday of borrowing, the government was, even before the crisis, trying to regroup companies under the leadership of the International Corporation of Dubai (ICD) to ensure it had a better handle on finances.
Dubai’s total debt of about $80 billion includes about $19 billion owed by the department of finance and ICD, as well as the $22 billion owed by Dubai World. Some $13 billion to $17 billion is thought to be due next year, and ratings agency Standard Poor’s estimates as much as $50 billion will have to be repaid by 2012.
That debt pile is the result of Dubai’s aggressive expansion in recent years. With much of the UAE’s oil wealth concentrated in Abu Dhabi, Dubai adopted an aggressive diversification strategy, developing trade, transport and tourism businesses, some of which, such as DP World, were then able to make their mark on the international stage.
By setting up a series of free zones, each dedicated to a specific sector, Dubai attracted foreign companies and established itself as the regional provider of services. Allowing foreigners to buy real estate in some of the gated communities brought more money into the economy.
In 2008 oil accounted for only 2 per cent of GDP, with wholesale and retail trade, real estate and business services making up much bigger shares.
But Dubai got carried away with its own success, with many projects in the fiercely competitive business environment financed with debt. With an over-ambitious ruler, Sheikh Mohammed bin Rashid, dreaming of bigger things and instituting a fiercely competitive business environment that encouraged his lieutenants to come up with new ideas and projects, many financed with debt, the emirate was heading for trouble.
Some of the biggest conglomerates created real estate and investment companies that competed with each other and then established subsidiaries that were also pushed into rivalry. As the real estate projects became more exuberant, the government lost track of the finances of entities it controlled. That the lines between the assets of the ruler and those of the government were blurred further confused the picture.
When the financial crisis hit, one of its first casualties was the realestate market. HSBC said in a recent report that the market lost 50 per cent of its value, compromising the quality of bank assets. – (Copyright The Financial Times Limited 2009).
Source: irishtimes.com
To everyone’s surprise the classrooms were not empty and the exit was not as dramatic as expected.
For many residents, the city state might have been burdened by an $80 billion (€53.5 billion) debt mountain, but with a diversified economy and a more liberal culture than many of its neighbours, it remained the place to be.
The economic slowdown had even enhanced the lifestyle; it meant less traffic and fewer construction projects.
However negative the sentiment today, the rise of the emirate, and its claim to be the region’s business centre, had a convincing foundation.
Analysts pointed to lingering concerns about the real estate market but confidence was returning. Passenger numbers at the airport showed double-digit growth in the past five months and hotels had been busier, though occupancy rates remained down on last year.
“As the region’s only provider of world-class services, Dubai should . . . see export demand strengthen as activity strengthens elsewhere,” HSBC said in an October report.
But Wednesday’s announcement of a debt standstill at Dubai World, the government flagship property holding company, has raised questions about the city’s recovery.
Much of the optimistic business sentiment in recent months had rested on the assumption that Dubai was getting its house in order and would meet debt obligations. “While we have seen some improvement in the [United Arab Emirates’] confidence since mid-2009, rescheduling of Dubai World’s debt will provide a setback to sentiment,” said Monica Malik, economist at investment bank EFG-Hermes in Dubai.
Though she still expected to see a gradual improvement in Dubai’s economy over the next year, she added that, given “the high level of leverage by both individuals and corporates and exposure to the property sector, the UAE will have one of the weakest non-oil economic outlooks in the region”.
Dubai does not consolidate the finances of its various entities, and data is difficult to come by, a source of frustration for analysts. Statistics are often compiled for the whole UAE and not for Dubai alone.
According to a prospectus issued to investors last month, nominal gross domestic product (GDP) growth fell to 18 per cent in 2008 from 27.4 per cent the previous year. Many economists expect the UAE economy to have contracted this year.
It is the debt burden that has raised the most concern about Dubai’s future. After the heyday of borrowing, the government was, even before the crisis, trying to regroup companies under the leadership of the International Corporation of Dubai (ICD) to ensure it had a better handle on finances.
Dubai’s total debt of about $80 billion includes about $19 billion owed by the department of finance and ICD, as well as the $22 billion owed by Dubai World. Some $13 billion to $17 billion is thought to be due next year, and ratings agency Standard Poor’s estimates as much as $50 billion will have to be repaid by 2012.
That debt pile is the result of Dubai’s aggressive expansion in recent years. With much of the UAE’s oil wealth concentrated in Abu Dhabi, Dubai adopted an aggressive diversification strategy, developing trade, transport and tourism businesses, some of which, such as DP World, were then able to make their mark on the international stage.
By setting up a series of free zones, each dedicated to a specific sector, Dubai attracted foreign companies and established itself as the regional provider of services. Allowing foreigners to buy real estate in some of the gated communities brought more money into the economy.
In 2008 oil accounted for only 2 per cent of GDP, with wholesale and retail trade, real estate and business services making up much bigger shares.
But Dubai got carried away with its own success, with many projects in the fiercely competitive business environment financed with debt. With an over-ambitious ruler, Sheikh Mohammed bin Rashid, dreaming of bigger things and instituting a fiercely competitive business environment that encouraged his lieutenants to come up with new ideas and projects, many financed with debt, the emirate was heading for trouble.
Some of the biggest conglomerates created real estate and investment companies that competed with each other and then established subsidiaries that were also pushed into rivalry. As the real estate projects became more exuberant, the government lost track of the finances of entities it controlled. That the lines between the assets of the ruler and those of the government were blurred further confused the picture.
When the financial crisis hit, one of its first casualties was the realestate market. HSBC said in a recent report that the market lost 50 per cent of its value, compromising the quality of bank assets. – (Copyright The Financial Times Limited 2009).
Source: irishtimes.com
Tuesday, November 24, 2009
Metal & Finance Sectors surge high in Hong Kong and China
Stocks in markets across Hong Kong and China recorded a substantial jump, especially in the metal and finance sectors, as the economies start showing signs of growth again. While metal prices were revived by the price of gold hitting an all time high, China's finance sector kicked up on the optimism that Beijing's easy monetary policies might just get extended till 2010.
A 0.92% jump was recorded by China's main stock index, taking it to the highest figure recorded in the past 3½ months, mainly on the back of carmakers, shares of who jumped high after Guangzhou Autoshow shared a much optimistic outlook for the sector.
Hong Kong's Hang Seng Index also closed 1.41%, or 315.55 points, higher, at 22,771.39 points. Despite this, the total turnover was recorded as HK$51.9 billion ($6.7 billion), the lowest since October 12 and down from Friday's HK$60.5 billion.
China, on the other hand, is definitely on the path to success. Experts are of the view that the country will achieve an 8.5% growth during the coming year, and there will be no major changes made to the lenient monetary policies currently followed.
topnews.com.sg
A 0.92% jump was recorded by China's main stock index, taking it to the highest figure recorded in the past 3½ months, mainly on the back of carmakers, shares of who jumped high after Guangzhou Autoshow shared a much optimistic outlook for the sector.
Hong Kong's Hang Seng Index also closed 1.41%, or 315.55 points, higher, at 22,771.39 points. Despite this, the total turnover was recorded as HK$51.9 billion ($6.7 billion), the lowest since October 12 and down from Friday's HK$60.5 billion.
China, on the other hand, is definitely on the path to success. Experts are of the view that the country will achieve an 8.5% growth during the coming year, and there will be no major changes made to the lenient monetary policies currently followed.
topnews.com.sg
IRAQ WAR INQUIRY - Puts Gordon Brown on the hot seat
As Chancellor of the Exchequer Gordon Brown was notorious for vanishing when the Government was in trouble - pushing a junior minister to take the flack in a TV studio or at the despatch box.
Such is his persistence in this regard that for some he calls to mind TS Eliot's poem: ‘Macavity's a Mystery Cat: he's called the Hidden Paw - / For he's the master criminal who can defy the Law. / He's the bafflement of Scotland Yard, the Flying Squad's despair: / For when they reach the scene of crime - Macavity's not there!’
I thought he would find ducking for cover rather harder since becoming Prime Minister but the practice has not been altogether abandoned. When he lost his nerve over calling an early election two years ago he developed a fondness for using the back entrance of Downing Street to avoid the media. He eventually left Andrew Marr to make the announcement that the election had been called off.
The Labour MP Sion Simon once said that Brown ‘is a man often judged by his absences’, adding that: ‘At times of more personal controversy - such as the frequently embarrassing escapades of his spin doctor Mr Charlie Whelan and his eventual sacking by Tony Blair - Brown disappears equally silkily into the sand.’
Despite being author of a book on courage this character flaw has been retained by Brown. Today we read that he will not give evidence to Sir John Chilcot's inquiry into the Iraq War.
The purpose of the Inquiry is to see what lessons could be learnt from the conflict - a theme that even its more ardent supporters would surely concede offers some scope. Naturally Tony Blair is expected to be asked some challenging questions. But one would also have thought that the current Prime Minister would have something to contribute.
He is a busy man but surely such an important matter would make it worth finding the time to take part. Brown was a supporter of Britain's participation in the conflict. But this is evidently not a matter he wants to remind people of in the run up to the General Election.
There is also a more particular reason why he should be giving evidence. Wars have a cost in treasure as well as blood. We could never have gone into the Iraq war if Brown, as the Chancellor of the Exchequer, had not agreed to finance it.
Before the war he set aside £1 billion for the cost of it. In fact the bill has been much higher. The cost of the war itself in 2003 was £1.3 billion and there has been another billion a year spent since then on maintaining the British military presence in that country. The cost last year had actually risen sharply to £1.9 billion.
Yet despite that huge total there were some pretty scandalous economies. Troops were sent to Iraq without boots or hats fit for the desert. Leaked documents that have just emerged include the comment from Lieutenant Col Dunn of the Royal Engineers that some soldiers ‘only had five rounds of ammunition each and only enough body armour for those in the front and rear vehicles’.
Then Lt Col John Power of the Royal Electrical and Mechanical Engineers commented on the supply chain chaos: ‘I know for a fact that there was one container full of skis in the desert.’ Ptarmigan, the main longer-distance radio, 'tended to drop out at around noon because of the heat' leaving soldiers in the midst of combat resorting to their mobile phones.
How many of the British soldiers killed in Iraq, such as Sgt Steven Roberts, would still be alive if there had not been shortages of the proper Enhanced Combat Body Armour? Before Sgt Roberts died he kept an audio diary, which his widow Samantha released, where he called supplies ‘a joke.’
The Government response to equipment shortages is to deny the problem exists - rather than take serious action to deal with it. In this respect it seems very few ‘lessons have been learned.’
Of course as the Prime Minister this is now ultimately Gordon Brown's responsibility. But as the Chancellor of the Exchequer he should have made it his business that there was enough money to do the job and that the considerable sums provided were effectively spent. Let him come before the inquiry and tell us what responsibility he took in this matter.
dailymail.co.uk
Such is his persistence in this regard that for some he calls to mind TS Eliot's poem: ‘Macavity's a Mystery Cat: he's called the Hidden Paw - / For he's the master criminal who can defy the Law. / He's the bafflement of Scotland Yard, the Flying Squad's despair: / For when they reach the scene of crime - Macavity's not there!’
I thought he would find ducking for cover rather harder since becoming Prime Minister but the practice has not been altogether abandoned. When he lost his nerve over calling an early election two years ago he developed a fondness for using the back entrance of Downing Street to avoid the media. He eventually left Andrew Marr to make the announcement that the election had been called off.
The Labour MP Sion Simon once said that Brown ‘is a man often judged by his absences’, adding that: ‘At times of more personal controversy - such as the frequently embarrassing escapades of his spin doctor Mr Charlie Whelan and his eventual sacking by Tony Blair - Brown disappears equally silkily into the sand.’
Despite being author of a book on courage this character flaw has been retained by Brown. Today we read that he will not give evidence to Sir John Chilcot's inquiry into the Iraq War.
The purpose of the Inquiry is to see what lessons could be learnt from the conflict - a theme that even its more ardent supporters would surely concede offers some scope. Naturally Tony Blair is expected to be asked some challenging questions. But one would also have thought that the current Prime Minister would have something to contribute.
He is a busy man but surely such an important matter would make it worth finding the time to take part. Brown was a supporter of Britain's participation in the conflict. But this is evidently not a matter he wants to remind people of in the run up to the General Election.
There is also a more particular reason why he should be giving evidence. Wars have a cost in treasure as well as blood. We could never have gone into the Iraq war if Brown, as the Chancellor of the Exchequer, had not agreed to finance it.
Before the war he set aside £1 billion for the cost of it. In fact the bill has been much higher. The cost of the war itself in 2003 was £1.3 billion and there has been another billion a year spent since then on maintaining the British military presence in that country. The cost last year had actually risen sharply to £1.9 billion.
Yet despite that huge total there were some pretty scandalous economies. Troops were sent to Iraq without boots or hats fit for the desert. Leaked documents that have just emerged include the comment from Lieutenant Col Dunn of the Royal Engineers that some soldiers ‘only had five rounds of ammunition each and only enough body armour for those in the front and rear vehicles’.
Then Lt Col John Power of the Royal Electrical and Mechanical Engineers commented on the supply chain chaos: ‘I know for a fact that there was one container full of skis in the desert.’ Ptarmigan, the main longer-distance radio, 'tended to drop out at around noon because of the heat' leaving soldiers in the midst of combat resorting to their mobile phones.
How many of the British soldiers killed in Iraq, such as Sgt Steven Roberts, would still be alive if there had not been shortages of the proper Enhanced Combat Body Armour? Before Sgt Roberts died he kept an audio diary, which his widow Samantha released, where he called supplies ‘a joke.’
The Government response to equipment shortages is to deny the problem exists - rather than take serious action to deal with it. In this respect it seems very few ‘lessons have been learned.’
Of course as the Prime Minister this is now ultimately Gordon Brown's responsibility. But as the Chancellor of the Exchequer he should have made it his business that there was enough money to do the job and that the considerable sums provided were effectively spent. Let him come before the inquiry and tell us what responsibility he took in this matter.
dailymail.co.uk
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