An overwhelming need to be right??
Post Date: 18 Jan 10
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Monday, January 18, 2010
Thursday, December 17, 2009
Asiaone - Adding a shine to your holdings
Adding a shine to your holdings
There are a variety of ways you can give your portfolio a gilt edge.
Tue, Dec 15, 2009
The Straits Times
Bars and coins
United Overseas Bank (UOB) sells physical gold that can be bought from and sold back to the bank at its daily buy-sell market rate. Gold bars come in a range of sizes, from small wafers to cast kilobars. Coins range from one-twentieth of an ounce to one ounce.
'This is one of the best forms of gold investment as you can keep the coins and bars in safe deposit boxes, and there is a variety of sizes to choose from,' said IPP Financial Advisers investment director Albert Lam.
A cast gold bar is made when melted gold is poured into a mould to achieve the desired shape and weight.
Gold bars and coins are subject to goods and services tax (GST) so an investor will lose 7 per cent of his investment up front.
Certificates
At UOB, a gold certificate is sold in kilobars, which are kilogram bars of gold.
In a single certificate, you can buy up to 30 kilobars.
UOB sold one kilobar for $55,416 last week.
The certificates have no expiry date and can be exchanged for physical gold or cash whenever the need arises.
A flat $5 charge for each certificate and an administrative fee of $30 a kilobar per year apply.
Gold savings account
At UOB, consumers can, through a passbook, buy and sell gold at prevailing market prices and transact any time during banking hours.
Teacher Arfiah Arshad, 39, sank $5,000 into a UOB Gold savings account last December and $5,000 into UOB Gold and General unit trust in February.
Both accounts are up by 50 per cent.
She invested in gold after her adviser at Financial Alliance, Mr Sani Hamid, suggested she do so in order to diversify her portfolio.
'When I went to open a gold savings account at UOB, the relationship manager tried to persuade me to invest in an Asia infrastructure unit trust because she said few people were investing in gold then,' said Madam Arfiah, who did not heed the banker's advice.
'I'm glad I stuck to investing in gold,' she said.
Citibank also offers retail customers the chance to trade in gold via its Citibank Gold Account.
To establish this account, you just need to buy a minimum of 30 ounces of gold, said Mr Shrikant Bhat, Citibank Singapore's head of wealth management.
The price of gold hit a record of US$1,226.10 an ounce last week.
Gold jewellery
Perhaps the easiest way to buy physical gold is to walk into a goldsmith and buy 22-karat or 24-karat jewellery.
But Mr Lam cautioned: 'Design and workmanship costs are priced into the jewellery and hence if consumers are buying for investment purposes, they end up paying a premium.'
Funds and ETFs
One fund that gives exposure to gold is the Schroder Alternative Solutions Gold and Metals Fund.
The fund's gold exposure varies between 25 per cent and 75 per cent. The rest comprises industrial metals such as copper and aluminium.
Exchange traded funds (ETFs) are another alternative. They allow people to gain exposure to gold prices without taking delivery of the metal itself.
They trade like stocks on the exchange, so you can buy and sell them at market prices throughout the trading day.
Gold ETFs include SPDR gold shares, which are listed on the Singapore Exchange.
Post Date: 17 Dec 09
There are a variety of ways you can give your portfolio a gilt edge.
Tue, Dec 15, 2009
The Straits Times
Bars and coins
United Overseas Bank (UOB) sells physical gold that can be bought from and sold back to the bank at its daily buy-sell market rate. Gold bars come in a range of sizes, from small wafers to cast kilobars. Coins range from one-twentieth of an ounce to one ounce.
'This is one of the best forms of gold investment as you can keep the coins and bars in safe deposit boxes, and there is a variety of sizes to choose from,' said IPP Financial Advisers investment director Albert Lam.
A cast gold bar is made when melted gold is poured into a mould to achieve the desired shape and weight.
Gold bars and coins are subject to goods and services tax (GST) so an investor will lose 7 per cent of his investment up front.
Certificates
At UOB, a gold certificate is sold in kilobars, which are kilogram bars of gold.
In a single certificate, you can buy up to 30 kilobars.
UOB sold one kilobar for $55,416 last week.
The certificates have no expiry date and can be exchanged for physical gold or cash whenever the need arises.
A flat $5 charge for each certificate and an administrative fee of $30 a kilobar per year apply.
Gold savings account
At UOB, consumers can, through a passbook, buy and sell gold at prevailing market prices and transact any time during banking hours.
Teacher Arfiah Arshad, 39, sank $5,000 into a UOB Gold savings account last December and $5,000 into UOB Gold and General unit trust in February.
Both accounts are up by 50 per cent.
She invested in gold after her adviser at Financial Alliance, Mr Sani Hamid, suggested she do so in order to diversify her portfolio.
'When I went to open a gold savings account at UOB, the relationship manager tried to persuade me to invest in an Asia infrastructure unit trust because she said few people were investing in gold then,' said Madam Arfiah, who did not heed the banker's advice.
'I'm glad I stuck to investing in gold,' she said.
Citibank also offers retail customers the chance to trade in gold via its Citibank Gold Account.
To establish this account, you just need to buy a minimum of 30 ounces of gold, said Mr Shrikant Bhat, Citibank Singapore's head of wealth management.
The price of gold hit a record of US$1,226.10 an ounce last week.
Gold jewellery
Perhaps the easiest way to buy physical gold is to walk into a goldsmith and buy 22-karat or 24-karat jewellery.
But Mr Lam cautioned: 'Design and workmanship costs are priced into the jewellery and hence if consumers are buying for investment purposes, they end up paying a premium.'
Funds and ETFs
One fund that gives exposure to gold is the Schroder Alternative Solutions Gold and Metals Fund.
The fund's gold exposure varies between 25 per cent and 75 per cent. The rest comprises industrial metals such as copper and aluminium.
Exchange traded funds (ETFs) are another alternative. They allow people to gain exposure to gold prices without taking delivery of the metal itself.
They trade like stocks on the exchange, so you can buy and sell them at market prices throughout the trading day.
Gold ETFs include SPDR gold shares, which are listed on the Singapore Exchange.
Post Date: 17 Dec 09
Asiaone - Gold Rush
Gold Rush
As gold price hits never-seen-before levels, Gabriel Chen looks at why the precious metal can make a good investment and asks analysts about its prospects.
Tue, Dec 15, 2009
The Straits Times
By Gabriel Chen
If some pundits are right, gold is well on its way to a dazzling US$2,000 (S$2,780) or more an ounce in the next decade - heights never even hinted at before this financial crisis struck.
The old record of US$1,030 set in March last year was surpassed in early October and prices have continued to climb.
To put that in perspective, gold was just US$254 an ounce back in 1999, a 20-year low.
'Gold is going up,' said Singapore-based investor Jim Rogers, who tips the precious metal to top US$2,000 an ounce in the next decade. 'I'm bullish on all commodities until the bull market comes to an end,' he told The Sunday Times.
Mr Rogers, who predicted the rally in commodities back in 1999, is not the only bull out there.
Goldman Sachs raised its 12-month gold forecast to US$1,350 an ounce this month from a previous estimate of US$960, while Barclays Capital has said that 'prospects for a run at US$1,500 should not be underestimated' next year.
Gold's glister has been fuelled by the persistent weakness in the American dollar and news that central banks in India, Russia and elsewhere have increased their holdings of the metal.
Speculation that governments, the biggest bullion holders, will make even more purchases is merely adding to the mood music.
Can the trend go further? According to Channel Islands-based GoldMoney.com founder James Turk, 'gold is going to be at US$8,000 by 2013' due to the historical relationship between the metal and the Dow Jones Industrial Average.
He was quoted by Bloomberg as saying that gold and the Dow were at around the same level during the Great Depression and the early 1980s.
In January 1980, they were both slightly below the US$1,000 mark, but while the Dow is up 10-fold since then, gold's ascent has not been as spectacular, he argued.
But others in the industry do not expect gold to soar that high.
'US$2,000 or US$3,000 an ounce levels make sense only if the US dollar drops by another 30 per cent on a broad basis and United States inflation moves to 10 per cent, which we do not expect,' said UBS Wealth Management's head of commodities research, Mr Dominic Schnider.
However, should Mr Turk be correct, it will not be long before we all start melting down our wedding rings.
Why invest in gold?
There are fears that the massive monetary and fiscal policy stimulus plans that have been pumped into the global economy will generate inflation.
Gold acts as a hedge against such an eventuality.
Dr Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors, said gold is seen as a good alternative to paper money.
'While there are fears about the future of the US dollar, the outlook for other major currencies is not much better,' he said.
'Europe's economy looks worse than the US, the strong yen looks unsustainable given the damage it has already caused the Japanese economy and the (Chinese yuan) is not really an option as it's not convertible.'
A convertible currency is one that can be quickly and easily bought and sold for other currencies.
Diversification advantage
Many studies show that gold prices generally move in the opposite direction from stock prices: Gold soars when stocks tank.
'Portfolios that contain even a small allocation of gold are proven to be generally more robust and better able to cope with market uncertainties than those that do not, showing improved stability and predictability of returns,' said Mr Albert Cheng, managing director of World Gold Council for the Far East region.
He said the optimum investment in gold for any long- term institutional investment portfolio ranges from 4 per cent to 10 per cent.
Rarity factor
Governments can print as much money as they like - to pay off their debts - but they cannot create gold, which is limited in supply.
'In all of history, only 161,000 tonnes of gold have been mined. This is barely enough to fill two Olympic-sized swimming pools, and of this amount, more than half was extracted in the recent 50 years,' said IPP Financial Advisers investment director Albert Lam.
Outlook for gold
Despite the risk of prices reversing in the short term, financial experts say investors should add gold to their portfolios if they have not already done so.
'Worrying too much about a short-term pullback risks missing the bigger medium-term picture which remains very positive for gold,' Dr Oliver said.
One key reason for gold's rise is that central banks in emerging countries such as China and India are becoming buyers as part of a strategy to reduce the exposure of their foreign exchange reserves to paper currencies.
In the past, central banks focused on accumulating paper money such as the greenback, but they now want to hold more gold for diversification purposes.
'Over the past five years, central banks and governments have sold around 440 tonnes of gold every year,' Mr Schnider said.
'In the coming years, central bank gold sales should come to a halt. In fact, we actually foresee that central banks may become net buyers.'
But experts also caution that investing in gold is highly speculative and prices can be volatile. After rising to new highs in 1974, gold prices plunged, falling to about US$100 in mid-1976 from about US$200 at the start of 1975.
'Animal spirits can play a huge role in the determination of the gold price. This can make for a volatile ride over time and suggests that gold should not dominate an investor's portfolio,' Dr Oliver said.
Animal spirits - a term coined by the late British economist John Maynard Keynes - refers to a particular sort of confidence, or 'naive optimism'.
Rather than dabble in gold alone, Dr Oliver suggested that investors have exposure to a broad basket of commodities.
Mr Shrikant Bhat, Citibank Singapore's head of wealth management, urged investors to understand the factors driving the gold price movement and then take a view on whether those factors will continue to drive the demand.
Post Date: 17 Dec 09
As gold price hits never-seen-before levels, Gabriel Chen looks at why the precious metal can make a good investment and asks analysts about its prospects.
Tue, Dec 15, 2009
The Straits Times
By Gabriel Chen
If some pundits are right, gold is well on its way to a dazzling US$2,000 (S$2,780) or more an ounce in the next decade - heights never even hinted at before this financial crisis struck.
The old record of US$1,030 set in March last year was surpassed in early October and prices have continued to climb.
To put that in perspective, gold was just US$254 an ounce back in 1999, a 20-year low.
'Gold is going up,' said Singapore-based investor Jim Rogers, who tips the precious metal to top US$2,000 an ounce in the next decade. 'I'm bullish on all commodities until the bull market comes to an end,' he told The Sunday Times.
Mr Rogers, who predicted the rally in commodities back in 1999, is not the only bull out there.
Goldman Sachs raised its 12-month gold forecast to US$1,350 an ounce this month from a previous estimate of US$960, while Barclays Capital has said that 'prospects for a run at US$1,500 should not be underestimated' next year.
Gold's glister has been fuelled by the persistent weakness in the American dollar and news that central banks in India, Russia and elsewhere have increased their holdings of the metal.
Speculation that governments, the biggest bullion holders, will make even more purchases is merely adding to the mood music.
Can the trend go further? According to Channel Islands-based GoldMoney.com founder James Turk, 'gold is going to be at US$8,000 by 2013' due to the historical relationship between the metal and the Dow Jones Industrial Average.
He was quoted by Bloomberg as saying that gold and the Dow were at around the same level during the Great Depression and the early 1980s.
In January 1980, they were both slightly below the US$1,000 mark, but while the Dow is up 10-fold since then, gold's ascent has not been as spectacular, he argued.
But others in the industry do not expect gold to soar that high.
'US$2,000 or US$3,000 an ounce levels make sense only if the US dollar drops by another 30 per cent on a broad basis and United States inflation moves to 10 per cent, which we do not expect,' said UBS Wealth Management's head of commodities research, Mr Dominic Schnider.
However, should Mr Turk be correct, it will not be long before we all start melting down our wedding rings.
Why invest in gold?
There are fears that the massive monetary and fiscal policy stimulus plans that have been pumped into the global economy will generate inflation.
Gold acts as a hedge against such an eventuality.
Dr Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors, said gold is seen as a good alternative to paper money.
'While there are fears about the future of the US dollar, the outlook for other major currencies is not much better,' he said.
'Europe's economy looks worse than the US, the strong yen looks unsustainable given the damage it has already caused the Japanese economy and the (Chinese yuan) is not really an option as it's not convertible.'
A convertible currency is one that can be quickly and easily bought and sold for other currencies.
Diversification advantage
Many studies show that gold prices generally move in the opposite direction from stock prices: Gold soars when stocks tank.
'Portfolios that contain even a small allocation of gold are proven to be generally more robust and better able to cope with market uncertainties than those that do not, showing improved stability and predictability of returns,' said Mr Albert Cheng, managing director of World Gold Council for the Far East region.
He said the optimum investment in gold for any long- term institutional investment portfolio ranges from 4 per cent to 10 per cent.
Rarity factor
Governments can print as much money as they like - to pay off their debts - but they cannot create gold, which is limited in supply.
'In all of history, only 161,000 tonnes of gold have been mined. This is barely enough to fill two Olympic-sized swimming pools, and of this amount, more than half was extracted in the recent 50 years,' said IPP Financial Advisers investment director Albert Lam.
Outlook for gold
Despite the risk of prices reversing in the short term, financial experts say investors should add gold to their portfolios if they have not already done so.
'Worrying too much about a short-term pullback risks missing the bigger medium-term picture which remains very positive for gold,' Dr Oliver said.
One key reason for gold's rise is that central banks in emerging countries such as China and India are becoming buyers as part of a strategy to reduce the exposure of their foreign exchange reserves to paper currencies.
In the past, central banks focused on accumulating paper money such as the greenback, but they now want to hold more gold for diversification purposes.
'Over the past five years, central banks and governments have sold around 440 tonnes of gold every year,' Mr Schnider said.
'In the coming years, central bank gold sales should come to a halt. In fact, we actually foresee that central banks may become net buyers.'
But experts also caution that investing in gold is highly speculative and prices can be volatile. After rising to new highs in 1974, gold prices plunged, falling to about US$100 in mid-1976 from about US$200 at the start of 1975.
'Animal spirits can play a huge role in the determination of the gold price. This can make for a volatile ride over time and suggests that gold should not dominate an investor's portfolio,' Dr Oliver said.
Animal spirits - a term coined by the late British economist John Maynard Keynes - refers to a particular sort of confidence, or 'naive optimism'.
Rather than dabble in gold alone, Dr Oliver suggested that investors have exposure to a broad basket of commodities.
Mr Shrikant Bhat, Citibank Singapore's head of wealth management, urged investors to understand the factors driving the gold price movement and then take a view on whether those factors will continue to drive the demand.
Post Date: 17 Dec 09
Tuesday, November 03, 2009
RBA lifts interest rate
From The West Australian,
The Reserve Bank of Australia has lifted the official interest rate by 25 basis points. Today's decision means the official cash rate will go from 3.25 per cent to 3.50 per cent.
That's continuing good news for my Aussie dollar holdings!
Post Date: 3 Nov 09
The Reserve Bank of Australia has lifted the official interest rate by 25 basis points. Today's decision means the official cash rate will go from 3.25 per cent to 3.50 per cent.
That's continuing good news for my Aussie dollar holdings!
Post Date: 3 Nov 09
Tuesday, October 20, 2009
Tuesday, October 06, 2009
RBA lifts interest rate
I know most will be cursing, but I'm happy that at least the savings rate will go up. And so will the Aussie dollar!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://au.news.yahoo.com/thewest/a/-/newshome/6147184
BREAKING NEWS: Homeowners face an immediate increase in their mortgage repayments after the Reserve Bank lifted official interest rates a quarter percentage point.
In a sign the Reserve believes the Australian economy is increasingly strong, the RBA used its monthly meeting this morning to take rates to 3.25 per cent.
It is the first increase since March last year, and follows 4.25 percentage points worth of cuts in the wake of the global financial crisis.
The move will add almost $46 a month to the repayments on a $300,000 mortgage.
Post Date: 6 Oct 09
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://au.news.yahoo.com/thewest/a/-/newshome/6147184
BREAKING NEWS: Homeowners face an immediate increase in their mortgage repayments after the Reserve Bank lifted official interest rates a quarter percentage point.
In a sign the Reserve believes the Australian economy is increasingly strong, the RBA used its monthly meeting this morning to take rates to 3.25 per cent.
It is the first increase since March last year, and follows 4.25 percentage points worth of cuts in the wake of the global financial crisis.
The move will add almost $46 a month to the repayments on a $300,000 mortgage.
Post Date: 6 Oct 09
Friday, October 02, 2009
More to come
SINGAPORE - Singapore shares closed lower on Friday with the blue-chip Straits Times Index down 52.91 points to 2,604.53.
Volume was 2.31 billion shares worth $1.79 billion. Losers led gainers 533 to 88. -- BT ONLINE
At one stage, everything on my watchlist was red. I doubt Mon will be any better.
Post Date: 2 Oct 09
Tuesday, August 25, 2009
Better cashflow tracking
Want to try something to improve the cashflow and cash-at-hand picture.
From next month onwards, every time a credit card transaction is incurred, I'll pay the amount into the credit card account. Will do this on a weekly basis, and monitor this trial over 3 months. Also right that items are expensed in the month of incurrence.
Post Date: 26 Aug 09
Post Date: 26 Aug 09
Wednesday, July 08, 2009
MAS bans 10 FIs from selling structured notes
http://www.businesstimes.com.sg/sub/news/story/0,4574,340842,00.html?
COMMENTARY
The cane whistles, but does it really hurt?
MAS bans won't affect FIs much and it shouldn't gloss over deeper issues
By WONG WEI KONG
IT is a pity that what seems so tough is really just a slap on the wrist.
So the Monetary Authority of Singapore (MAS) has banned 10 financial institutions (FIs) from selling structured notes for periods ranging between six months and two years for mis-selling products linked to collapsed US bank Lehman Brothers.
The offending banks on the list are all established names: ABN-Amro, DBS Bank, Maybank, DMG and Partners Securities, UOB Kay Hian, CIMB, Kim Eng Securities, OCBC Securities, Phillip Securities as well as Hong Leong Finance. These were names that many investors instinctively trusted - but, as the MAS findings show, it was a trust that was grossly misplaced.
On the surface, the MAS ban, following approximately seven months of investigations, appears to be appropriate punishment. But it really rings hollow, because it isn't going to hurt the FIs very much. The fact is that the whole structured products market has vanished - the financial crisis and the structured notes fiasco have seen to that. Even without the ban, these FIs weren't selling any structured notes.
This will be cold comfort to the 10,000 or so investors who suffered from the mis-selling, some of whom will never fully recover from the blow. And it isn't satisfactory, given the serious lapses at the FIs. The list of shortcomings makes for shocking reading: risk profile questionnaires that were wrongly scored; risk profile scoring systems that did not allocate numerical scores; wrong classifications of products, and relationship managers (RMs) and representatives who refused to attend the pre-requisite training. And all the FIs get, so far at least, is a ban on doing a business that doesn't exist anymore.
If a ban really means nothing, the MAS should have imposed fines, big fines, that will hurt the FIs. If it does not want to collect fines, it should have considered pushing the FIs to compensate, more than what they have done, the investors who are seeking redress. Of course, the FIs will say they're suffering reputational damage, but that's already a fact, and that is well deserved.
Oversight and processes
There's another point worth making. Apart from investigations into FI-wide issues, the MAS is concurrently looking into specific cases 'where individuals involved in the sale and marketing of the notes may have departed from the relevant regulatory standards'. Inquiries are ongoing and any regulatory action taken against individuals will be published in due course, the central bank said.
While it remains to be seen what the MAS will do in this respect, it will be a pity if any subsequent action taken is only against the RMs and representatives actually selling the products on the ground. The nature of the lapses identified by the MAS suggests a failure in oversight and processes, which really points the finger at senior executives, and they shouldn't escape responsibility.
And what about the MAS' own role? Dare we suggest that if the sub-prime fiasco hadn't happened and Lehman hadn't collapsed, the mis-selling would have continued merrily and no one would be the wiser? How closely did the central bank supervise the banks when it came to the sale of structured products before the crisis? Liberalising the market is good, but if not implemented properly, the costs, as proven now, are enormous. The MAS itself should be deriving lessons from the whole affair.
Time to win back trust
The industry will respond to this as it usually does. Indeed, the Association of Banks in Singapore (ABS) immediately announced that its member banks are putting in place a series of measures to further protect the interests of consumers who buy investment products, with the measures covering a range of governance and assurance processes, training and compensation of sales personnel, consumer education and enhancements to the sales process. Investors will take all this with a pinch of salt. Weren't there such protestations before?
Forget expansion - winning back trust should be the biggest priority for banks and financial institutions.
Post Date: 24 Jul 09
COMMENTARY
The cane whistles, but does it really hurt?
MAS bans won't affect FIs much and it shouldn't gloss over deeper issues
By WONG WEI KONG
IT is a pity that what seems so tough is really just a slap on the wrist.
So the Monetary Authority of Singapore (MAS) has banned 10 financial institutions (FIs) from selling structured notes for periods ranging between six months and two years for mis-selling products linked to collapsed US bank Lehman Brothers.
The offending banks on the list are all established names: ABN-Amro, DBS Bank, Maybank, DMG and Partners Securities, UOB Kay Hian, CIMB, Kim Eng Securities, OCBC Securities, Phillip Securities as well as Hong Leong Finance. These were names that many investors instinctively trusted - but, as the MAS findings show, it was a trust that was grossly misplaced.
On the surface, the MAS ban, following approximately seven months of investigations, appears to be appropriate punishment. But it really rings hollow, because it isn't going to hurt the FIs very much. The fact is that the whole structured products market has vanished - the financial crisis and the structured notes fiasco have seen to that. Even without the ban, these FIs weren't selling any structured notes.
This will be cold comfort to the 10,000 or so investors who suffered from the mis-selling, some of whom will never fully recover from the blow. And it isn't satisfactory, given the serious lapses at the FIs. The list of shortcomings makes for shocking reading: risk profile questionnaires that were wrongly scored; risk profile scoring systems that did not allocate numerical scores; wrong classifications of products, and relationship managers (RMs) and representatives who refused to attend the pre-requisite training. And all the FIs get, so far at least, is a ban on doing a business that doesn't exist anymore.
If a ban really means nothing, the MAS should have imposed fines, big fines, that will hurt the FIs. If it does not want to collect fines, it should have considered pushing the FIs to compensate, more than what they have done, the investors who are seeking redress. Of course, the FIs will say they're suffering reputational damage, but that's already a fact, and that is well deserved.
Oversight and processes
There's another point worth making. Apart from investigations into FI-wide issues, the MAS is concurrently looking into specific cases 'where individuals involved in the sale and marketing of the notes may have departed from the relevant regulatory standards'. Inquiries are ongoing and any regulatory action taken against individuals will be published in due course, the central bank said.
While it remains to be seen what the MAS will do in this respect, it will be a pity if any subsequent action taken is only against the RMs and representatives actually selling the products on the ground. The nature of the lapses identified by the MAS suggests a failure in oversight and processes, which really points the finger at senior executives, and they shouldn't escape responsibility.
And what about the MAS' own role? Dare we suggest that if the sub-prime fiasco hadn't happened and Lehman hadn't collapsed, the mis-selling would have continued merrily and no one would be the wiser? How closely did the central bank supervise the banks when it came to the sale of structured products before the crisis? Liberalising the market is good, but if not implemented properly, the costs, as proven now, are enormous. The MAS itself should be deriving lessons from the whole affair.
Time to win back trust
The industry will respond to this as it usually does. Indeed, the Association of Banks in Singapore (ABS) immediately announced that its member banks are putting in place a series of measures to further protect the interests of consumers who buy investment products, with the measures covering a range of governance and assurance processes, training and compensation of sales personnel, consumer education and enhancements to the sales process. Investors will take all this with a pinch of salt. Weren't there such protestations before?
Forget expansion - winning back trust should be the biggest priority for banks and financial institutions.
Post Date: 24 Jul 09
Monday, March 30, 2009
Bankwest sheds 250 jobs in WA
http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=133000
Bankwest sheds 250 jobs in WA
30th March 2009, 7:15 WST
WA's biggest bank will cut 400 jobs from its workforce due to the economic downturn.
Bankwest confirmed this morning that about 250 roles in WA and 150 on the east coast would be made redundant this year.
The decision comes after four years of rapid expansion that has seen Perth-based Bankwest increase its workforce from 3340 to 5100.
Bankwest managing director Jon Sutton said when he assumed the role of managing director late last year he believed there would be no job losses in 2009.
But a rapidly deteriorating economy meant Bankwest had to make adjustments if it was to remain an efficient and viable business.
"The deteriorating national and Western Australian economies and a high cost base mean Bankwest has no choice but to cut costs to remain competitive,” he said this morning.
"As an independent entity with its own banking licence and board of directors, Bankwest remains committed to being the leading bank for West Australians and to building our business by providing attractive and competitive products for our customers.
"Lowering our costs will strengthen our ability to continue delivering some of the most competitive home loans, deposit rates and credit cards in Australia for the benefit of almost one million customers."
Mr Sutton said Bankwest would continue to be run as an independent bank headquartered in Perth.
He said no retail customer facing roles will be lost under the workforce decision and no stores will be closed.
"I regret the impact on Bankwest staff but those affected will receive severance payments and outplacement support to assist them to find other employment,” Mr Sutton said.
"Decisions of this sort are never easy and are only taken after full investigations of all options available."
Bankwest is a wholly-owned subsidiary of the Commonwealth Bank of Australia.
Post Date: 30 Mar 09
Bankwest sheds 250 jobs in WA
30th March 2009, 7:15 WST
WA's biggest bank will cut 400 jobs from its workforce due to the economic downturn.
Bankwest confirmed this morning that about 250 roles in WA and 150 on the east coast would be made redundant this year.
The decision comes after four years of rapid expansion that has seen Perth-based Bankwest increase its workforce from 3340 to 5100.
Bankwest managing director Jon Sutton said when he assumed the role of managing director late last year he believed there would be no job losses in 2009.
But a rapidly deteriorating economy meant Bankwest had to make adjustments if it was to remain an efficient and viable business.
"The deteriorating national and Western Australian economies and a high cost base mean Bankwest has no choice but to cut costs to remain competitive,” he said this morning.
"As an independent entity with its own banking licence and board of directors, Bankwest remains committed to being the leading bank for West Australians and to building our business by providing attractive and competitive products for our customers.
"Lowering our costs will strengthen our ability to continue delivering some of the most competitive home loans, deposit rates and credit cards in Australia for the benefit of almost one million customers."
Mr Sutton said Bankwest would continue to be run as an independent bank headquartered in Perth.
He said no retail customer facing roles will be lost under the workforce decision and no stores will be closed.
"I regret the impact on Bankwest staff but those affected will receive severance payments and outplacement support to assist them to find other employment,” Mr Sutton said.
"Decisions of this sort are never easy and are only taken after full investigations of all options available."
Bankwest is a wholly-owned subsidiary of the Commonwealth Bank of Australia.
Post Date: 30 Mar 09
Tuesday, February 03, 2009
RBA slashes official interest rate
Original article here.
3rd February 2009, 12:30 WST
The Reserve Bank has slashed the official interest rate by one per cent today, taking it to its lowest level since the 1960s.
Following the Rudd Government's $42 billion package to kickstart the economy, the Reserve board cut the official cash rate to 3.25 per cent.
For a person with a $300,000 mortgage, the cut will be worth $182 a month if fully passed on by commercial banks.
In a statement, bank governor Glenn Stevens said the near term outlook for the global economy was the "weakest for many years", although he added that conditions in Australia were much better than those overseas.
However, problems were intensifying while the threat of inflation was receding.
"The combination of last year’s financial turmoil, a severe global downturn and substantial falls in commodity prices has had a significant dampening effect on confidence, and therefore on prospects for growth in demand," he said.
Mr Stevens drew special attention to the Government's package, effectively giving it the Reserve's seal of approval.
"In making its decision, the board took into account the package of measures announced by the Government earlier today," he said.
"The combination of expansionary monetary and fiscal policies now in place will help to cushion the Australian economy from the contractionary forces coming from abroad."
Since September, the bank has cut the interest rate by four per cent - the deepest cuts in the shortest time frame in the Reserve's history.
Post Date: 3 February 2009
3rd February 2009, 12:30 WST
The Reserve Bank has slashed the official interest rate by one per cent today, taking it to its lowest level since the 1960s.
Following the Rudd Government's $42 billion package to kickstart the economy, the Reserve board cut the official cash rate to 3.25 per cent.
For a person with a $300,000 mortgage, the cut will be worth $182 a month if fully passed on by commercial banks.
In a statement, bank governor Glenn Stevens said the near term outlook for the global economy was the "weakest for many years", although he added that conditions in Australia were much better than those overseas.
However, problems were intensifying while the threat of inflation was receding.
"The combination of last year’s financial turmoil, a severe global downturn and substantial falls in commodity prices has had a significant dampening effect on confidence, and therefore on prospects for growth in demand," he said.
Mr Stevens drew special attention to the Government's package, effectively giving it the Reserve's seal of approval.
"In making its decision, the board took into account the package of measures announced by the Government earlier today," he said.
"The combination of expansionary monetary and fiscal policies now in place will help to cushion the Australian economy from the contractionary forces coming from abroad."
Since September, the bank has cut the interest rate by four per cent - the deepest cuts in the shortest time frame in the Reserve's history.
Post Date: 3 February 2009
Thursday, January 01, 2009
Friday, October 17, 2008
空虚
今天是农历九月十九, 纪念观世音菩萨成道日.
早上到四马路走了一趟. 拜拜之后, 原本还想跟菩萨求支签, 想问问为什么迟迟没有宝宝的音讯. 可惜的是, 今天没有支签服务.
庙里庙外, 人群很多,但视线很模糊. 是睡眠不足, 还是对周围的一切完全没兴趣?
近期还真的有很多东西烦 - 工作, baby, 投资... 看到人家买车买楼, 感到很自卑, 总觉得自己比不上别人, 因为自己做的, 不比别人多, 比别人好. 真的很难受, 也很空虚. 为了这些红尘事而烦, 显得很肤浅, 但毕竟我还是凡夫俗子.
老婆相反的, 对这些不以为然. 或许, 这就是我需要的, 那股平衡的力量吧.
嗨 ...
Image credit here.
Post Date: 17 Oct 08
Monday, October 13, 2008
If this is not arse luck, then what is??
Receipt of document regarding rights issue: 3 Oct 08
Rights price: 75 cents
Share price: no movement (last done at 84.5 cents long ago)
From 5 - 12 Oct, tried to apply at ATM but either forgot or no ATM.
Share price: still no movement
Finally, today, remembered and found ATM. Happily punched it entitlement of 1 lot, and applied for 2 excess lots. Damage is $2252, including $2 admin fee.
And guess what? The share price finally moved - DOWN! It gapped down to 67.5 cents.
And this is the day STI closed up 128.02 points ! Immediately paper loss $225.
CCB.
Post Date: 14 Oct 08
Rights price: 75 cents
Share price: no movement (last done at 84.5 cents long ago)
From 5 - 12 Oct, tried to apply at ATM but either forgot or no ATM.
Share price: still no movement
Finally, today, remembered and found ATM. Happily punched it entitlement of 1 lot, and applied for 2 excess lots. Damage is $2252, including $2 admin fee.
And guess what? The share price finally moved - DOWN! It gapped down to 67.5 cents.
And this is the day STI closed up 128.02 points ! Immediately paper loss $225.
CCB.
Post Date: 14 Oct 08
Wednesday, October 08, 2008
BankWest in A$2.1b takeover bid from CBA
The West Australian article here.
Premier told BankWest jobs to stay in WA
8th October 2008, 17:30 WST
Premier Colin Barnett said today he had been reassured BankWest staff levels across WA would not be affected by the proposed $2.1 billion takeover bid by Commonwealth Bank.
In a media statement, Mr Barnett said he had spoken with Commonwealth Bank chief executive officer Ralph Norris, who had given a commitment regarding staffing levels and an assurance that BankWest would continue to operate independently of the Commonwealth Bank, with its headquarters to remain in WA.
Mr Barnett said the commitments would give BankWest greater strength and return the bank to Australian ownership.
He said any questions relating to competition would be addressed by the Australian Competition and Consumer Commission when assessing the purchase proposal.
Mr Norris this morning announced plans to buy BankWest and St Andrew’s Australia from their UK based parent HBOS provided the proposal passes all competition, regulatory and government approvals.
He said BankWest was a quality asset which had been made available on attractive terms, from troubled UK mortgage giant HBOS.
“BankWest provides a significant opportunity to further develop the group’s business in the fast growing WA market,” he said in an announcement this morning.
“It complements our existing operations and will deliver additional growth opportunities in key market segments, as well as enhanced product and service delivery opportunities for customers.”
Despite Mr Barnett’s comments, the Financial Sector Union has warned that WA jobs were likely to be the first to go if Bankwest was taken over by Commonwealth Bank.
The Bank of Western Australia Act 1995 stipulates BankWest’s head office, managing director and core functions must remain in WA.
The company, founded as Agricultural Bank of Western Australia, will be only a drop in the ocean for Commonwealth Bank’s overall market capitalisation – with the $2.1 billion purchase price not requiring the approval of CBA shareholders.
According to the Australian Prudential Regulation Authority, BankWest holds 4 per cent of Australia’s total lending market share and 4 per cent of all home loans, dwarfed by CBA’s 21 per cent and 20 per cent stakes respectively.
CBA holds $365 billion in loans and advances, $262 billion in customer deposits and $185 million in funds under administration – dwarfing Bankwest’s $55 billion in loans, $37 billion in deposits and $2 billion under administration.
Commonwealth also has 10 million customers to BankWest’s 900,000, and employs 39,600 people – leading to speculation that the jobs of BankWest’s 5,000 employees may be under threat.
While CBA has committed to retaining the BankWest brand in WA, an investor pack released by the bank this morning says it plans to streamline administrative functions, systems and processes of the banks where synergies exist.
CBA will also review BankWest’s recent east coast retail expansion strategy, and look to integrate the St Andrew’s Australia insurance and investments arm into its insurance operations.
BankWest is a market leader in WA, with its 100 branches across the state dwarfing CBA’s 77, ANZ’s 81 and National Australia Bank’s 72.
Only the combined operations of Westpac and St George Bank had more, at 107.
BankWest also has more Automatic Teller Machines in the State – 366 to CBA’s 275 – and 28 business centres to CBA’s 10.
PERTH
JAYNE RICKARD AND ANDREW HOBBS
Image credit here.
Post Date: 8 Oct 08
Tuesday, October 07, 2008
RBA cuts official interest rates by a full percentage point
The West Australian article here.
Market stunned by massive rate cut
7th October 2008, 11:30 WST
The Reserve Bank has cut official interest rates by a full percentage point, stunning economists and financial markets.
In its first full percentage point cut in rates since May 1992, bank governor Glenn Stevens said conditions in international financial markets had taken a “significant turn for the worse” through September.
The move takes rates to six per cent, the lowest since November 2006.
Mr Stevens said the slowdown in the global economy meant the inflation risk was abating.
The bank had to make monetary policy much easier in such conditions.
“The recent deterioration in prospects for global growth, together with much more difficult market conditions even for creditworthy borrowers, now present the risk that demand and output could be significantly weaker than earlier expected. Should that occur, inflation would most likely fall faster than earlier forecast,” he said.
“Given that background, the Board judged that a material change to the balance of risks surrounding the outlook had occurred, requiring a significantly less restrictive stance of monetary policy.”
In an admission of the concerns that banks may not be able to pass on all cuts in rates, Mr Stevens said the board realised the tougher conditions facing commercial banks.
“The board also took careful note of movements in funding costs in wholesale markets. Having weighed these considerations, the board decided that, on this occasion, an unusually large movement in the cash rate was appropriate in order to bring about a significant reduction in costs to borrowers,” he said.
The unexpected move - markets had expected a half percentage cut - generated a huge spike on the Australian stock market which had been in negative territory before the announcement.
Macquarie Bank interest rate specialist Rory Robertson said the Reserve would aggressively cut interest rates in coming months to avoid sending Australia into recession.
“RBA policymakers now will do what they can to avoid excessive rises in unemployment,” he said.
“That means managing key lending rates lower, with some urgency. And not worrying too much about the recent weakness of the Australian dollar, which may or may not be sustained; if it is, recession will be easier to avoid.”
SHANE WRIGHT
ECONOMICS EDITOR
Post Date: 8 Oct 08
BT: Tough going for Singapore bourse
BT article here.
Published October 7, 2008
TOUGH GOING FOR SINGAPORE BOURSE
SINGAPORE shares crashed yesterday, in line with global markets, and more pain appears in store for investors, notwithstanding the odd technical rebound or two.
The economic slowdown and a weakening Singapore dollar look set to serve up a double whammy for Singapore stocks. The strongest official warning so far that the Singapore economy is headed for tough times came over the weekend, when Finance Minister Tharman Shanmugaratnam said that the economy is expected to slow, not just one or two quarters, but for several quarters as the sub-prime meltdown evolves into an economic crisis.
This sets the stage for two major and potentially market-moving announcements this week. On Friday, the government will announce flash GDP estimates for the third quarter. Many private sector economists are expecting a technical recession (two consecutive quarters of GDP declines) starting in the third quarter, and some are warning of a full-blown recession ahead, with year-on-year quarterly contractions.
With economists slashing their estimates of Singapore's 2008 growth to well below 4 per cent, all eyes are now on the government cutting its full-year economic growth forecast of 4-5 per cent.
Yesterday's sharp drop in stock prices is one indication that the market is starting to price in a prolonged economic slowdown, and further downgrades are likely. Corporate profits will increasingly be at risk.
The Q3 reporting season, which will begin shortly, will provide the first hint of the expected deterioration in earnings, although easing fuel and commodities prices may provide some relief.
The Q3 GDP flash estimates will also provide a backdrop for another key announcement on the same day - the Monetary Authority of Singapore's (MAS) twice-yearly policy statement. With growth replacing inflation as the main concern, the MAS is expected to signal a slower pace of appreciation for the Singapore dollar against its major counterparts.
The weakening of the Sing dollar will aid the competitiveness of Singapore exporters and help cushion the blow of slowing demand in key markets. It will also be welcomed by local companies which have seen their overseas earnings pared down by conversion losses when the Sing dollar was gaining.
But the weakening Sing dollar could be negative for stocks. When the Sing dollar appreciation story was in play over the last one year or so, there were significant foreign capital inflows into the Singapore economy. A lot of the inflows found their way into local stocks, as foreign investors anticipated currency as well as capital gains.
Now, with the expected Sing dollar weakening, the reverse will be true, leaving the stock market facing the prospects of capital outflows. So it could be some tough months ahead for the Singapore stock market as well.
Image credit here.
Post Date: 7 Oct 08
Monday, October 06, 2008
STI - 6 Oct 2008
**Update**
The STI actually ended 128.80 points (5.6%) lower at 2,168.32 points.
Post Date: 7 Oct 2008
The STI actually ended 128.80 points (5.6%) lower at 2,168.32 points.
Post Date: 7 Oct 2008
Thursday, September 04, 2008
Slowing Australian economy
To stimulate a slowing economy, the Reserve Bank of Australia lowered the cash rate by 25 basis points to 7.0%, effective 3 September 2008.
The Herald Sun reported that " ... the Aussie's collapse from its mid-July peak of US98.49c has been the most visible sign of the economy cooling to its slowest level of growth in more than two years..."
Aiyah. Because of this, my Aussie dollar fixed account has receded 8.6% (from S$1.3187 to today's S$1.2047).
Australian Dollar to Singapore Dollar Exchange Rate
Can't change into S$. Have to keep in A$, and survive on interest. Poor baby fund ...
Post Date: 4 Sep 08
The Herald Sun reported that " ... the Aussie's collapse from its mid-July peak of US98.49c has been the most visible sign of the economy cooling to its slowest level of growth in more than two years..."
Aiyah. Because of this, my Aussie dollar fixed account has receded 8.6% (from S$1.3187 to today's S$1.2047).
Australian Dollar to Singapore Dollar Exchange Rate
Can't change into S$. Have to keep in A$, and survive on interest. Poor baby fund ...
Post Date: 4 Sep 08
Monday, June 16, 2008
BizTimes: Global IPO market still solid, thanks to BRIC
It's reassuring to be reading this in the Business Times. I really hope I made the right choice.
http://www.businesstimes.com.sg/sub/news/story/0,4574,283651,00.html?
Ernst & Young report says Brazil, Russia, India, China will pick up slack
By MICHELLE QUAH
(SINGAPORE) Despite market volatility and the credit crunch caused by the US sub-prime crisis last year, global initial public offering (IPO) markets continued to see a healthy flow of activity, fuelled mainly by emerging markets.
Ernst & Young's (EY) fifth annual Global IPO Trends report said that global IPO activity soared to an all-time high of US$284 billion raised in 1,979 deals. And the BRIC countries - Brazil, Russia, India and China - were responsible for over 40 per cent of the proceeds raised.
Going forward, investment bankers and stock exchange executives interviewed by EY predict a healthy pipeline of global IPOs in the year ahead, especially from emerging markets.
This is despite a drastic slowdown in almost all global IPO markets in the first quarter of this year. There were 236 IPOs in the first quarter, generating US$40.9 billion - a 38 per cent drop in volume and a 15 per cent decline in capital raised, from the first quarter of 2007.
EY's report blamed the market turmoil triggered by the credit crunch, which led to a sharp deceleration in most IPO markets around the world. 'Faced with more scrutinising investors and stringent valuations, record numbers of businesses withdrew or postponed their IPO plans,' it said.
Notably, however, eight out of the top 10 IPOs last year were companies from the emerging markets - which were bolstered by robust economic growth at a time when developed markets had to endure a slowdown.
Overall, Greater China raised the most capital and launched the most IPOs, drawing in US$66 billion in 259 deals. The US took second place with 172 IPOs generating US$34.2 billion. The third spot was taken by a second emerging market - Brazil - whose IPO markets produced US$27.3 billion in 64 IPOs.
Investment bankers and stock exchange executives noted that soaring global liquidity and flourishing local economies have kindled emerging markets growth.
'It's a combination of the economic, fiscal and currency strength within these local markets, combined with massive global liquidity,' said Lisa Carnoy, managing director and co-head of equity capital markets at Merrill Lynch in New York.
Noreen Culhane, executive vice-president of the global corporate client group at NYSE Euronext, said: 'As these emerging economies develop so rapidly, there is both a need and an opportunity for new entrepreneurial businesses. These businesses need capital to fund organic growth and to gain a currency for acquisitions.'
And global investors with an appetite for risk have been shifting assets to fast-growing emerging markets where higher returns can be achieved. 'It's a little easier to achieve the alpha or high growth that investors seek in the emerging markets, given their generally greater underlying economic strength,' said Jonathan Grussing, managing director and head of equity corporate finance at Credit Suisse in London.
......
Post Date: 16 Jun 08
http://www.businesstimes.com.sg/sub/news/story/0,4574,283651,00.html?
Ernst & Young report says Brazil, Russia, India, China will pick up slack
By MICHELLE QUAH
(SINGAPORE) Despite market volatility and the credit crunch caused by the US sub-prime crisis last year, global initial public offering (IPO) markets continued to see a healthy flow of activity, fuelled mainly by emerging markets.
Ernst & Young's (EY) fifth annual Global IPO Trends report said that global IPO activity soared to an all-time high of US$284 billion raised in 1,979 deals. And the BRIC countries - Brazil, Russia, India and China - were responsible for over 40 per cent of the proceeds raised.
Going forward, investment bankers and stock exchange executives interviewed by EY predict a healthy pipeline of global IPOs in the year ahead, especially from emerging markets.
This is despite a drastic slowdown in almost all global IPO markets in the first quarter of this year. There were 236 IPOs in the first quarter, generating US$40.9 billion - a 38 per cent drop in volume and a 15 per cent decline in capital raised, from the first quarter of 2007.
EY's report blamed the market turmoil triggered by the credit crunch, which led to a sharp deceleration in most IPO markets around the world. 'Faced with more scrutinising investors and stringent valuations, record numbers of businesses withdrew or postponed their IPO plans,' it said.
Notably, however, eight out of the top 10 IPOs last year were companies from the emerging markets - which were bolstered by robust economic growth at a time when developed markets had to endure a slowdown.
Overall, Greater China raised the most capital and launched the most IPOs, drawing in US$66 billion in 259 deals. The US took second place with 172 IPOs generating US$34.2 billion. The third spot was taken by a second emerging market - Brazil - whose IPO markets produced US$27.3 billion in 64 IPOs.
Investment bankers and stock exchange executives noted that soaring global liquidity and flourishing local economies have kindled emerging markets growth.
'It's a combination of the economic, fiscal and currency strength within these local markets, combined with massive global liquidity,' said Lisa Carnoy, managing director and co-head of equity capital markets at Merrill Lynch in New York.
Noreen Culhane, executive vice-president of the global corporate client group at NYSE Euronext, said: 'As these emerging economies develop so rapidly, there is both a need and an opportunity for new entrepreneurial businesses. These businesses need capital to fund organic growth and to gain a currency for acquisitions.'
And global investors with an appetite for risk have been shifting assets to fast-growing emerging markets where higher returns can be achieved. 'It's a little easier to achieve the alpha or high growth that investors seek in the emerging markets, given their generally greater underlying economic strength,' said Jonathan Grussing, managing director and head of equity corporate finance at Credit Suisse in London.
......
Post Date: 16 Jun 08
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