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after 2000 the big funds killed off the big tech like now
So far, the tech trade hasn&rsquo t suffered much. A handful of large companies in technology and adjacent sectors account for most of the S& P 500&rsquo s advance so far this year. , , , , , and make up 30.5% of the S& P 500, up from 21.5% at the end of last year.
So far, the tech trade hasn&rsquo t suffered much. A handful of large companies in technology and adjacent sectors account for most of the S& P 500&rsquo s advance so far this year. , , , , , and make up 30.5% of the S& P 500, up from 21.5% at the end of last year.
chartistkao1 ( Date: 10-Oct-2023 16:15) Posted:
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similar to 1998 to 2000
The S& P 500 rallied Friday, notching its best day in more than a month, after investors cheered signs of softening wage growth in the September jobs report. Technology stocks led the way higher, again powering the market after a recent spell of weakness. Investors are also watching the unfolding Israel-Hamas war for developments that could affect markets.
Rising interest rates hold the potential to spur a more lasting shift in market leadership. The low rates of recent years made the future growth promised by tech companies particularly attractive. If rates were to remain high, that could make far-off profits a less alluring bet.
The S& P 500 rallied Friday, notching its best day in more than a month, after investors cheered signs of softening wage growth in the September jobs report. Technology stocks led the way higher, again powering the market after a recent spell of weakness. Investors are also watching the unfolding Israel-Hamas war for developments that could affect markets.
Rising interest rates hold the potential to spur a more lasting shift in market leadership. The low rates of recent years made the future growth promised by tech companies particularly attractive. If rates were to remain high, that could make far-off profits a less alluring bet.
chartistkao1 ( Date: 10-Oct-2023 16:13) Posted:
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The S& P 500 as a whole, meantime, has fallen close to its 200-day moving average, a long-term trend line consulted by analysts. It ended Monday 3% above the moving average. One day last week, it closed just 0.7% above the line.
&ldquo Holding the 200 day is one of those basic measures of: &lsquo Is this market holding up or is it potentially getting a lot worse?&rsquo &rdquo Keller said.
Falling below the moving average shows &ldquo there aren&rsquo t buyers coming in where you&rsquo d expect they normally would, and that usually is a concerning sign of a further bearish decline,&rdquo he said.
&ldquo Holding the 200 day is one of those basic measures of: &lsquo Is this market holding up or is it potentially getting a lot worse?&rsquo &rdquo Keller said.
Falling below the moving average shows &ldquo there aren&rsquo t buyers coming in where you&rsquo d expect they normally would, and that usually is a concerning sign of a further bearish decline,&rdquo he said.
chartistkao1 ( Date: 10-Oct-2023 16:12) Posted:
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The bond selloff is likely to have lasting effects on stocks
Sept. 2022' 230255075100%
Updated Oct. 10, 2023 12:06 am ET
Stock investors are scrutinizing the bond market because yields affect everything in markets and the economy, from corporate borrowing costs to the present value of future earnings and the likely direction of stock indexes.
That means the bond selloff, which recently drove the yield on the benchmark 10-year Treasury note above 4.8% for the first time since 2007, could have lasting effects on which stocks lead the market and when major indexes start climbing again.
The S& P 500 has retreated 5.5% from its July high, cutting its year-to-date advance to 13%, while the Dow Jones Industrial Average briefly gave up all of its gains for the year last week.
Analysts say the size and speed of the changes in long-term rates make it less likely that stocks are poised to embark on a sustainable new rally.
&ldquo Rates are really the name of the game right now,&rdquo said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. &ldquo As long as you have that upward pressure on rates, that&rsquo s what&rsquo s really keeping the equity markets in this kind of stasis.&rdquo
That means the bond selloff, which recently drove the yield on the benchmark 10-year Treasury note above 4.8% for the first time since 2007, could have lasting effects on which stocks lead the market and when major indexes start climbing again.
The S& P 500 has retreated 5.5% from its July high, cutting its year-to-date advance to 13%, while the Dow Jones Industrial Average briefly gave up all of its gains for the year last week.
Analysts say the size and speed of the changes in long-term rates make it less likely that stocks are poised to embark on a sustainable new rally.
&ldquo Rates are really the name of the game right now,&rdquo said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. &ldquo As long as you have that upward pressure on rates, that&rsquo s what&rsquo s really keeping the equity markets in this kind of stasis.&rdquo
S& P 500 earnings yield, next 12 months2011' 15' 200246810%
The S& P 500&rsquo s earnings yield, based on profits expected over the next 12 months, was just 0.766 percentage point higher Friday than the yield on the 10-year Treasury. That&rsquo s the lowest equity-risk premium since June 2002, according to Dow Jones Market Data.
The dwindling reward for risk-taking has weighed on prices throughout the stock market. Several commonly used technical indicators show the extent of the pullback.
The number of S& P 500 stocks hitting new intraday 52-week lows recently rose to the highest level since October 2022, while the share of stocks trading above their 50-day moving averages fell to its lowest level in a year, according to Dow Jones Market Data.
In June and July, as the index advanced toward its 2023 high, few stocks were making new lows and many were trading above their recent averages.
The low levels of the breadth metrics don&rsquo t mean the market has bottomed. But when the indicators start to improve, that can be a promising signal, said David Keller, chief market strategist at StockCharts.com.
chartistkao1 ( Date: 10-Oct-2023 16:11) Posted:
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How Surging Yields Brought the Stock Rally to a Halt,
A surge in bond yields has interrupted the 2023 stock rally, leaving investors sifting through market signals to predict what comes next.Stock investors are scrutinizing the bond market because yields affect everything in markets and the economy, from corporate borrowing costs to the present value of future earnings and the likely direction of stock indexes.
That means the bond selloff, which recently drove the yield on the benchmark 10-year Treasury note above 4.8% for the first time since 2007, could have lasting effects on which stocks lead the market and when major indexes start climbing again.
The S& P 500 has retreated 5.5% from its July high, cutting its year-to-date advance to 13%, while the Dow Jones Industrial Average briefly gave up all of its gains for the year last week.
Analysts say the size and speed of the changes in long-term rates make it less likely that stocks are poised to embark on a sustainable new rally.
&ldquo Rates are really the name of the game right now,&rdquo said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. &ldquo As long as you have that upward pressure on rates, that&rsquo s what&rsquo s really keeping the equity markets in this kind of stasis.&rdquo
chartistkao1 ( Date: 10-Oct-2023 16:07) Posted:
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a different warfare form the 1997 and 2008' s financial attacks from the great wild west
Sovereign downgrades often reflect problems in the wider economy. This can destabilise banks by making them seem less creditworthy, leading their credit ratings to be downgraded too. That can make it harder for them to borrow money from the markets or potentially even from the Fed. This can then have knock-on effects in reducing banks&rsquo lending capacity, capital buffers for coping with bad debts, overall profitability and share prices.
Credit rating downgrades
The ratings agencies have added further pressure. In early August, Fitch downgraded its rating of US government debt to AA+ from AAA. It cited a likely deterioration in the public finances over the next three years and the endless politicking around the debt ceiling, which is the maximum level that the government can borrow.Sovereign downgrades often reflect problems in the wider economy. This can destabilise banks by making them seem less creditworthy, leading their credit ratings to be downgraded too. That can make it harder for them to borrow money from the markets or potentially even from the Fed. This can then have knock-on effects in reducing banks&rsquo lending capacity, capital buffers for coping with bad debts, overall profitability and share prices.
chartistkao1 ( Date: 10-Oct-2023 16:05) Posted:
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this money that flow into the bank shares
ready to fight a different war from the 2009' s assault
A focus on intelligence, air power and technology left it vulnerable to a low-tech ground assault-(continue rate hikes from US)
chartistkao1 ( Date: 10-Oct-2023 16:02) Posted:
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why money from selling bonds ,t-bills and cpf after 55 goes to the 3 sg bank shares
Raising rates reduces the value of banks&rsquo assets, increases what they have to pay to borrow, limits their profitability and generally increases their vulnerability to adverse events. Especially in the first half of 2023, banks have had to cope with low loan growth and high deposit costs, meaning the amount they have to pay out in relation to customers&rsquo deposits.
This increased cost is partly because lots of customers have been withdrawing their money and putting it into places where they can make more interest, such as money market funds. It forced banks to borrow more from the Fed to ensure they have enough money, and at rates much higher than they used to be.
This was one of the reasons for the banking collapses in the spring, destabilising them at a time when the value of the debt on their balance sheets had also fallen sharply. This saw more customers at other banks withdrawing deposits for fear that their money wasn&rsquo t safe either. In sum, US banks saw deposits declining between June 2022 and June 2023 by almost 4%. Together with higher interest rates, this is generally bad news for the banking sector.
You can see the effect on banks&rsquo profitability by looking at overall net interest margins (NIMs). These are a measure of what banks receive in interest income minus what they pay out to depositors and other funders.
Raising rates reduces the value of banks&rsquo assets, increases what they have to pay to borrow, limits their profitability and generally increases their vulnerability to adverse events. Especially in the first half of 2023, banks have had to cope with low loan growth and high deposit costs, meaning the amount they have to pay out in relation to customers&rsquo deposits.
This increased cost is partly because lots of customers have been withdrawing their money and putting it into places where they can make more interest, such as money market funds. It forced banks to borrow more from the Fed to ensure they have enough money, and at rates much higher than they used to be.
This was one of the reasons for the banking collapses in the spring, destabilising them at a time when the value of the debt on their balance sheets had also fallen sharply. This saw more customers at other banks withdrawing deposits for fear that their money wasn&rsquo t safe either. In sum, US banks saw deposits declining between June 2022 and June 2023 by almost 4%. Together with higher interest rates, this is generally bad news for the banking sector.
You can see the effect on banks&rsquo profitability by looking at overall net interest margins (NIMs). These are a measure of what banks receive in interest income minus what they pay out to depositors and other funders.
chartistkao1 ( Date: 10-Oct-2023 15:59) Posted:
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reits, developers and tech in sgx
Though the increases have slowed this year, such a sudden change can be very harmful for banks &ndash particularly as part of the sort of U-shaped movement in rates that we have seen since the global financial crisis of 2007-09.
Tight margins and dwindling deposits
Central banks have continued to increase interest rates to counter sustained inflation in recent months. In July, the Fed raised its key interest rate to as much as 5.5%, the highest in 20 years. The rate was near zero as recently as February 2022.Though the increases have slowed this year, such a sudden change can be very harmful for banks &ndash particularly as part of the sort of U-shaped movement in rates that we have seen since the global financial crisis of 2007-09.
chartistkao1 ( Date: 10-Oct-2023 15:57) Posted:
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after march 2022 to october 2023 the 12x us rate hikes screw up sg develper shares, reits and technology shares but not the 3 big sg bank shares
https://www.marketwatch.com/investing/stock/d05?countrycode=sg
https://www.investingnote.com/stocks/SGX:O39#/all
https://sginvestors.io/sgx/stock/u11-uob/share-price-history
screwed up shares from us rate hikes
https://sginvestors.io/sgx/stock/9ci-capitalandinvest/share-price-history
https://sginvestors.io/sgx/stock/c09-citydev/share-price-history
https://sginvestors.io/sgx/stock/v03-venture/news-article
chartistkao1 ( Date: 10-Oct-2023 15:51) Posted:
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after chinaization the gloal economy from 2003 to 2019,US lead the world to ah nehisation the supply chain after 2021 to 2024
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/cc7347d8-5b9e-47c8-8f52-9cdf73875248
Foreign investors have the potential to make or break upcoming tech IPOs in India as domestic funds remain cautious about backing lossmaking young ventures. In the first half of the year, foreign portfolio investors almost tripled their holdings in three start-ups and now hold 33.3 per cent of food delivery service Zomato, 22.7 per cent of logistics company Delhivery and 16.8 per cent of financial services provider Paytm. In addition, their share of insurance start-up Policybazaar doubled to nearly 30 per cent. For lifestyle company Nykaa, it&rsquo s up one-and-a-half times to 10 per cent. In comparison, domestic institutions in June owned 9.9 per cent of Zomato, 14.6 per cent of Delhivery, 3.5 per cent of Paytm, 15.4 per cent of Policybazaar and 11.6 per cent of Nykaa. Analysts say this divergence underscores foreign investors&rsquo familiarity with highly valued yet lossmaking public companies, particularly in the US, and domestic investors&rsquo reservations about such ventures. &ldquo Foreign investors are excited about the growing prospects of the Indian economy, and on a longer-term basis, these companies look promising,&rdquo said Kranthi Bathini, director of equity strategy at advisory WealthMills Securities. &ldquo They are more accustomed to seeing such businesses abroad than domestic investors.&rdquo This article is from Nikkei Asia, a global publication with a uniquely Asian perspective on politics, the economy, business and international affairs. Our own correspondents and outside commentators from around the world share their views on Asia, while our Asia300 section provides in-depth coverage of 300 of the biggest and fastest-growing listed companies from 11 economies outside Japan. Subscribe | Group subscriptions Some richly valued companies such as babycare retailer FirstCry, hospitality start-up Oyo, eyewear retailer Lenskart, mobility company Ola and food delivery firm Swiggy have revived plans to go public. Financial services provider Navi and consumer goods brand Mamaearth have already received regulators&rsquo approval to go public. These start-ups had parked their listing plans last year amid a stock market meltdown triggered by Russia&rsquo s invasion of Ukraine and steep interest rate increases by central banks around the world. Their prospects were also hurt by a general apathy towards lossmaking listed technology companies. Shares of Zomato, Paytm and Policybazaar, for instance, hit all-time lows last year but have since recovered after the companies reduced their losses. IPO-bound start-ups are now hoping to take advantage of a market rally triggered by a growth spurt that has outpaced Asian peers like Vietnam, Thailand, Indonesia and the Philippines, while China shows signs of falling into a slump. Foreign inflow will be crucial for some of the IPOs, particularly the bigger flotations such as those of Oyo, Firstcry and Swiggy, where the target to be raised could vary between $500mn and $1bn, according to executives aware of their plans. IPOs in India peaked in 2021, when 63 companies listed on the main stock exchanges, raising Rs1.18tn. A further 59 small businesses listed on exchanges earmarked for business with paid-up capital of less than Rs250mn. Dubbed SME (small and medium enterprises) listings, these IPOs raised Rs7.46bn. A Lenskart shop A Lenskart shop in Kolkata. The Indian eyewear retailer is among companies that have recently revived plans to go public © Debarchan Chatterjee/NurPhoto/Reuters As for the number of deals, public flotations this year have been dominated by SME listings. Between January and August, as many as 99 of these IPOs raised Rs24.5bn according to data platform Prime Database. During the same time span, 22 companies listed on the main exchanges, raising Rs150.5bn, according to Prime Database. India&rsquo s biggest IPO so far this year has been a Rs43.2bn ($525mn) flotation by Mankind Pharma. Foreign investors&rsquo appetite for lossmaking or slightly profitable start-ups has been &ldquo a function of cost of capital and return expectations&rdquo , according to Abhishek Basumallick, chief equity adviser at investment company Intelsense. &ldquo If a fund takes money from Indian investors, the return expectations will be higher than that of a fund which raised money from the western markets,&rdquo Basumallick said. &ldquo The expectation of foreign investors is lower because in their home market, the returns were even lower, at least until the recent rate hikes.&rdquo Foreign institutions have stepped up investments in India as they turn to emerging markets in pursuit of lucrative returns after central banks hit pause on their rate hike machines. Their investment in Indian equities between January and August stood at Rs1.35tn. The previous year, they were net sellers. According to Prime Database, foreign institutions in June accounted for 37.85 per cent of the Indian capital market&rsquo s free float, while domestic investors held 32.1 per cent. Company promoters, private equity investors, retail shareholders and others account for the remainder. An IPO revival is crucial for Indian start-ups and venture capital firms. The country has attracted billions of dollars of private capital over the past decade as VCs bet on its burgeoning middle class and growing internet-savvy population. However, a lack of profitable exits has raised questions about the market&rsquo s ability to generate meaningful returns. Consultancy Bain & Co calculates VC exits in India from 2015 to 2020 at $19.3bn. In 2021, an unusually good year, VCs sold shares worth about $9.5bn. The returns shrank to less than $4bn in 2022, with about 47 per cent of that coming from secondary share sales. &ldquo India is a great opportunity, but one cannot make funds on secondary sales,&rdquo said Madhu Shalini Iyer, managing partner at VC firm Rocketship.vc. &ldquo If we want future start-ups to be built in India, and there is a lot of appetite for that, then we better show returns.&rdquo A version of this article was first published by Nikkei Asia on October 2. © 2023 Nikkei Inc. All rights reserved. Related stories India EV scooter start-ups grapple with losses, uncertainty, rivals China&rsquo s Xiaomi accelerates push into India despite tensions China jitters turn private equity investors towards India, Indonesia SoftBank-backed Ola races to lead in India&rsquo s e-scooter market Event details and information Business of Art UK & Online 07 October 2024 Market shifts and future growth Presented byFT Live Copyright The Financial Times Limited 2023. All rights reserved. Late
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/cc7347d8-5b9e-47c8-8f52-9cdf73875248
Foreign investors have the potential to make or break upcoming tech IPOs in India as domestic funds remain cautious about backing lossmaking young ventures. In the first half of the year, foreign portfolio investors almost tripled their holdings in three start-ups and now hold 33.3 per cent of food delivery service Zomato, 22.7 per cent of logistics company Delhivery and 16.8 per cent of financial services provider Paytm. In addition, their share of insurance start-up Policybazaar doubled to nearly 30 per cent. For lifestyle company Nykaa, it&rsquo s up one-and-a-half times to 10 per cent. In comparison, domestic institutions in June owned 9.9 per cent of Zomato, 14.6 per cent of Delhivery, 3.5 per cent of Paytm, 15.4 per cent of Policybazaar and 11.6 per cent of Nykaa. Analysts say this divergence underscores foreign investors&rsquo familiarity with highly valued yet lossmaking public companies, particularly in the US, and domestic investors&rsquo reservations about such ventures. &ldquo Foreign investors are excited about the growing prospects of the Indian economy, and on a longer-term basis, these companies look promising,&rdquo said Kranthi Bathini, director of equity strategy at advisory WealthMills Securities. &ldquo They are more accustomed to seeing such businesses abroad than domestic investors.&rdquo This article is from Nikkei Asia, a global publication with a uniquely Asian perspective on politics, the economy, business and international affairs. Our own correspondents and outside commentators from around the world share their views on Asia, while our Asia300 section provides in-depth coverage of 300 of the biggest and fastest-growing listed companies from 11 economies outside Japan. Subscribe | Group subscriptions Some richly valued companies such as babycare retailer FirstCry, hospitality start-up Oyo, eyewear retailer Lenskart, mobility company Ola and food delivery firm Swiggy have revived plans to go public. Financial services provider Navi and consumer goods brand Mamaearth have already received regulators&rsquo approval to go public. These start-ups had parked their listing plans last year amid a stock market meltdown triggered by Russia&rsquo s invasion of Ukraine and steep interest rate increases by central banks around the world. Their prospects were also hurt by a general apathy towards lossmaking listed technology companies. Shares of Zomato, Paytm and Policybazaar, for instance, hit all-time lows last year but have since recovered after the companies reduced their losses. IPO-bound start-ups are now hoping to take advantage of a market rally triggered by a growth spurt that has outpaced Asian peers like Vietnam, Thailand, Indonesia and the Philippines, while China shows signs of falling into a slump. Foreign inflow will be crucial for some of the IPOs, particularly the bigger flotations such as those of Oyo, Firstcry and Swiggy, where the target to be raised could vary between $500mn and $1bn, according to executives aware of their plans. IPOs in India peaked in 2021, when 63 companies listed on the main stock exchanges, raising Rs1.18tn. A further 59 small businesses listed on exchanges earmarked for business with paid-up capital of less than Rs250mn. Dubbed SME (small and medium enterprises) listings, these IPOs raised Rs7.46bn. A Lenskart shop A Lenskart shop in Kolkata. The Indian eyewear retailer is among companies that have recently revived plans to go public © Debarchan Chatterjee/NurPhoto/Reuters As for the number of deals, public flotations this year have been dominated by SME listings. Between January and August, as many as 99 of these IPOs raised Rs24.5bn according to data platform Prime Database. During the same time span, 22 companies listed on the main exchanges, raising Rs150.5bn, according to Prime Database. India&rsquo s biggest IPO so far this year has been a Rs43.2bn ($525mn) flotation by Mankind Pharma. Foreign investors&rsquo appetite for lossmaking or slightly profitable start-ups has been &ldquo a function of cost of capital and return expectations&rdquo , according to Abhishek Basumallick, chief equity adviser at investment company Intelsense. &ldquo If a fund takes money from Indian investors, the return expectations will be higher than that of a fund which raised money from the western markets,&rdquo Basumallick said. &ldquo The expectation of foreign investors is lower because in their home market, the returns were even lower, at least until the recent rate hikes.&rdquo Foreign institutions have stepped up investments in India as they turn to emerging markets in pursuit of lucrative returns after central banks hit pause on their rate hike machines. Their investment in Indian equities between January and August stood at Rs1.35tn. The previous year, they were net sellers. According to Prime Database, foreign institutions in June accounted for 37.85 per cent of the Indian capital market&rsquo s free float, while domestic investors held 32.1 per cent. Company promoters, private equity investors, retail shareholders and others account for the remainder. An IPO revival is crucial for Indian start-ups and venture capital firms. The country has attracted billions of dollars of private capital over the past decade as VCs bet on its burgeoning middle class and growing internet-savvy population. However, a lack of profitable exits has raised questions about the market&rsquo s ability to generate meaningful returns. Consultancy Bain & Co calculates VC exits in India from 2015 to 2020 at $19.3bn. In 2021, an unusually good year, VCs sold shares worth about $9.5bn. The returns shrank to less than $4bn in 2022, with about 47 per cent of that coming from secondary share sales. &ldquo India is a great opportunity, but one cannot make funds on secondary sales,&rdquo said Madhu Shalini Iyer, managing partner at VC firm Rocketship.vc. &ldquo If we want future start-ups to be built in India, and there is a lot of appetite for that, then we better show returns.&rdquo A version of this article was first published by Nikkei Asia on October 2. © 2023 Nikkei Inc. All rights reserved. Related stories India EV scooter start-ups grapple with losses, uncertainty, rivals China&rsquo s Xiaomi accelerates push into India despite tensions China jitters turn private equity investors towards India, Indonesia SoftBank-backed Ola races to lead in India&rsquo s e-scooter market Event details and information Business of Art UK & Online 07 October 2024 Market shifts and future growth Presented byFT Live Copyright The Financial Times Limited 2023. All rights reserved. Late
chartistkao1 ( Date: 10-Oct-2023 15:47) Posted:
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Argentina&rsquo s peso plunges as Javier Milei touts dollarisation
Anti-establishment presidential frontrunner has encouraged voters to get rid of the currency ahead of this month&rsquo s polls
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/52b01eb8-9177-48e0-a4f5-2d344934cf98
Argentina&rsquo s peso has tumbled against the dollar as voters and markets brace for a possible victory by Javier Milei, a radical rightwing economist who wants to dollarise the economy, in elections on October 22. Argentina&rsquo s official exchange rate has been fixed at 365 pesos to the dollar since August. But on Monday its black market exchange houses &mdash where Argentines go to convert their savings into dollars &mdash were charging 945 pesos a greenback, a 7.4 per cent increase from Friday. The gap between the official and unofficial rates has widened to 165 per cent, the largest on record. The peso has already lost 71 per cent of its value against the dollar on parallel exchange markets over the past 12 months amid Argentina&rsquo s worst economic crisis in two decades. Annual inflation hit 124 per cent in August. Analysts said a strong poll performance by Milei, who has made scrapping the peso to stamp out inflation a central part of his presidential campaign, had increased the pressure on the exchange rate. Milei&rsquo s libertarian Libertad Avanza is leading in the polls, followed by the ruling centre-left Peronist coalition and centre-right opposition Juntos por el Cambio. In a radio interview on Monday, Milei advised Argentines against keeping their savings in investment instruments denominated in pesos. &ldquo Never in pesos, never in pesos,&rdquo he said. &ldquo The peso is a currency emitted by Argentine politicians, so it can&rsquo t be worth excrement, because those pieces of trash don&rsquo t even work as fertilisers.&rdquo About 13.6tn pesos were currently held in term deposits, said Amilcar Collante, an economist at La Plata national university. &ldquo Those pesos are currently contained by the system, but if people hear Milei say &lsquo after the election we are going to dollarise, so get rid of them&rsquo , that generates more demand for dollars,&rdquo he added. &ldquo What might work well for him electorally is very harmful for market expectations.&rdquo Argentina&rsquo s government has ploughed billions of dollars of its foreign currency reserves into legal parallel exchange markets this year to prop up the peso, with about $1bn spent in September. Recommended The FT ViewThe editorial board Argentina&rsquo s perilous path to economic stability The libertarian economist Javier Milei arrived to vote in Argentina&rsquo s primary elections But with the central bank now out of firepower &mdash its reserves excluding liabilities are about $5bn in the red &mdash the government has been forced to ease interventions, according to Fernando Marull, founder of Buenos Aires-based economic consultancy FMyA. &ldquo The pressure was so great that what they were doing was no longer working, so they have stopped,&rdquo Marull said. He added that the pressure on the exchange rate was unlikely to let up before the election. If polls are borne out, what happens after will depend partly on Milei&rsquo s attitude towards the peso. &ldquo If he [moderates] his statements, we may be able to anchor the peso. If he keeps telling people to get rid of them, it loses all anchors.&rdquo Sign up to the Emerging Markets: New York AM newsletter, every weekday Copyright The Financial Times Limited 2023. All rights reserved. Lates
https://www.ft.com/content/52b01eb8-9177-48e0-a4f5-2d344934cf98
Argentina&rsquo s peso has tumbled against the dollar as voters and markets brace for a possible victory by Javier Milei, a radical rightwing economist who wants to dollarise the economy, in elections on October 22. Argentina&rsquo s official exchange rate has been fixed at 365 pesos to the dollar since August. But on Monday its black market exchange houses &mdash where Argentines go to convert their savings into dollars &mdash were charging 945 pesos a greenback, a 7.4 per cent increase from Friday. The gap between the official and unofficial rates has widened to 165 per cent, the largest on record. The peso has already lost 71 per cent of its value against the dollar on parallel exchange markets over the past 12 months amid Argentina&rsquo s worst economic crisis in two decades. Annual inflation hit 124 per cent in August. Analysts said a strong poll performance by Milei, who has made scrapping the peso to stamp out inflation a central part of his presidential campaign, had increased the pressure on the exchange rate. Milei&rsquo s libertarian Libertad Avanza is leading in the polls, followed by the ruling centre-left Peronist coalition and centre-right opposition Juntos por el Cambio. In a radio interview on Monday, Milei advised Argentines against keeping their savings in investment instruments denominated in pesos. &ldquo Never in pesos, never in pesos,&rdquo he said. &ldquo The peso is a currency emitted by Argentine politicians, so it can&rsquo t be worth excrement, because those pieces of trash don&rsquo t even work as fertilisers.&rdquo About 13.6tn pesos were currently held in term deposits, said Amilcar Collante, an economist at La Plata national university. &ldquo Those pesos are currently contained by the system, but if people hear Milei say &lsquo after the election we are going to dollarise, so get rid of them&rsquo , that generates more demand for dollars,&rdquo he added. &ldquo What might work well for him electorally is very harmful for market expectations.&rdquo Argentina&rsquo s government has ploughed billions of dollars of its foreign currency reserves into legal parallel exchange markets this year to prop up the peso, with about $1bn spent in September. Recommended The FT ViewThe editorial board Argentina&rsquo s perilous path to economic stability The libertarian economist Javier Milei arrived to vote in Argentina&rsquo s primary elections But with the central bank now out of firepower &mdash its reserves excluding liabilities are about $5bn in the red &mdash the government has been forced to ease interventions, according to Fernando Marull, founder of Buenos Aires-based economic consultancy FMyA. &ldquo The pressure was so great that what they were doing was no longer working, so they have stopped,&rdquo Marull said. He added that the pressure on the exchange rate was unlikely to let up before the election. If polls are borne out, what happens after will depend partly on Milei&rsquo s attitude towards the peso. &ldquo If he [moderates] his statements, we may be able to anchor the peso. If he keeps telling people to get rid of them, it loses all anchors.&rdquo Sign up to the Emerging Markets: New York AM newsletter, every weekday Copyright The Financial Times Limited 2023. All rights reserved. Lates
chartistkao1 ( Date: 10-Oct-2023 15:45) Posted:
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Janet Yellen sees no market &lsquo dysfunction&rsquo from US bond rout
Treasury secretary says businesses and households are coping well with higher borrowing costs
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The surge in borrowing costs has not created dysfunction in US financial markets, Treasury secretary Janet Yellen said as she struck an optimistic tone about the capacity of banks, businesses and households to weather higher interest rates. Speaking at the start of this week&rsquo s IMF and World Bank annual meetings in Marrakech, Yellen dismissed concerns about the rout in the $25tn market for US government bonds, which has pushed the yield on the 10-year Treasury note to the highest level since 2007 and dragged up borrowing costs in other countries. &ldquo I haven&rsquo t seen any evidence of dysfunction in connection with the increase in interest rates,&rdquo she told the Financial Times. &ldquo When rates are more volatile, sometimes you see some impact on market function, but that is pretty standard.&rdquo She added that she was not aware of &ldquo anything that is particularly unusual&rdquo . The sell-off gathered momentum on Friday following the release of the latest jobs report, which showed significantly stronger than expected monthly payroll gains. More than 330,000 positions were added in September, about twice economists&rsquo expectations, sowing concern that the world&rsquo s largest economy is retaining too much momentum for inflation to be fully tamed. Yellen described the jobs report as &ldquo impressive&rdquo . The growth is a &ldquo positive, not a negative&rdquo , she added, reflecting &ldquo more people wanting to work and finding jobs&rdquo . Despite September&rsquo s hiring surge, which followed months of moderation, wage growth continued to slow and labour force participation &mdash the number of Americans either employed or looking for work &mdash steadied around its pre-pandemic level. &ldquo It&rsquo s consistent with a path in which, on balance, you are not seeing more labour market tightness,&rdquo she said, noting that core inflation, which strips out volatile food and energy prices, was &ldquo really well-behaved&rdquo . &ldquo What could be a problem is if we saw the labour market overheating, but I didn&rsquo t really see evidence here of that,&rdquo Yellen added. The Federal Reserve has said the labour market would need to soften in order to get price pressures down. But it maintained that a painful recession could be avoided, even as it recommitted at its last policy meeting in September on the need to keep interest rates elevated for an extended period. Officials are debating whether to raise the policy rate one more time this year or hold it throughout most of 2024. The federal funds rate stands at a 22-year high of 5.25-5.5 per cent following one of the central bank&rsquo s most forceful efforts to raise borrowing costs in decades. Speaking on Monday, Philip Jefferson, the Fed&rsquo s second-in-command, doubled down on the need for the central bank to &ldquo proceed carefully&rdquo with its forthcoming rate decisions, emphasising that he would incorporate rising Treasury yields into his assessment of whether tighter monetary policy is necessary. In separate comments, Dallas Fed president Lorie Logan went so far as to say that the recent move in financial conditions could offset the need for the central bank to take further action. Yellen rejected concerns that banks could suffer a repeat of the turmoil earlier this year that followed a sharp jump in borrowing costs. Weakened banks had taken steps to address their vulnerabilities, she said. This included paring back uninsured deposits, which make a lender susceptible to a run if customers get spooked. Moreover, she said credit quality on the whole was &ldquo very solid&rdquo . &ldquo [With] the rate rise in and of itself, it&rsquo s not obvious that it is putting a huge amount of pressure on households or businesses,&rdquo she said. At the annual meetings, the Treasury secretary is expected to focus on efforts to shore up the financial firepower of the World Bank and the IMF. The US wants to increase support to emerging and developing economies, tackle climate change more directly and counter China&rsquo s growing international influence. The effort to rally countries to inject more capital into these multilateral institutions does not address the issue of underrepresentation for countries such as China and emerging economies, which have less voting power than their economic standings might suggest. But Yellen acknowledged that was a debate for the future. Recommended Markets InsightEdward Yardeni The bond vigilantes are back US Treasury secretary Janet Yellen &ldquo We think the formula needs to be reconsidered,&rdquo she said of the IMF&rsquo s quota system, in which the US is the biggest shareholder and China, despite being the world&rsquo s second-largest economy, retains the third most powerful weight behind Japan. Beyond the relative size of each respective economy, Yellen said: &ldquo It is also important for China to live up to the norms of the institution when it comes to things like co-operation on debt restructuring and things like foreign exchange transparency.&rdquo Beijing has been criticised for delaying the resolution of thorny debt workouts, such as the one in Sri Lanka, for which it is the biggest official creditor. The Treasury secretary will also this week be pressed about US support for Ukraine, after Congress scrapped aid in order to avert a government shutdown last month. That funding is now in limbo amid political dysfunction in Washington following the removal of Kevin McCarthy as Speaker of the House of Representatives. Yellen said the Biden administration was &ldquo completely committed to getting this funding for Ukraine&rdquo , adding that officials &ldquo strongly believe that a majority of both Democrats and Republicans are supportive of that&rdquo . Event details and information Reviving the UK IPO Market Online 10 October 2023 Increasing public listings- which sectors have the highest growth potential? Presented byFT Live Copyright The Financial Times Limited 2023. All rights reserved. Latest on Global Economy
usdsgd1.3665
https://www.ft.com/content/9a70879c-9b70-4b56-bf02-e8695d3e3850
The surge in borrowing costs has not created dysfunction in US financial markets, Treasury secretary Janet Yellen said as she struck an optimistic tone about the capacity of banks, businesses and households to weather higher interest rates. Speaking at the start of this week&rsquo s IMF and World Bank annual meetings in Marrakech, Yellen dismissed concerns about the rout in the $25tn market for US government bonds, which has pushed the yield on the 10-year Treasury note to the highest level since 2007 and dragged up borrowing costs in other countries. &ldquo I haven&rsquo t seen any evidence of dysfunction in connection with the increase in interest rates,&rdquo she told the Financial Times. &ldquo When rates are more volatile, sometimes you see some impact on market function, but that is pretty standard.&rdquo She added that she was not aware of &ldquo anything that is particularly unusual&rdquo . The sell-off gathered momentum on Friday following the release of the latest jobs report, which showed significantly stronger than expected monthly payroll gains. More than 330,000 positions were added in September, about twice economists&rsquo expectations, sowing concern that the world&rsquo s largest economy is retaining too much momentum for inflation to be fully tamed. Yellen described the jobs report as &ldquo impressive&rdquo . The growth is a &ldquo positive, not a negative&rdquo , she added, reflecting &ldquo more people wanting to work and finding jobs&rdquo . Despite September&rsquo s hiring surge, which followed months of moderation, wage growth continued to slow and labour force participation &mdash the number of Americans either employed or looking for work &mdash steadied around its pre-pandemic level. &ldquo It&rsquo s consistent with a path in which, on balance, you are not seeing more labour market tightness,&rdquo she said, noting that core inflation, which strips out volatile food and energy prices, was &ldquo really well-behaved&rdquo . &ldquo What could be a problem is if we saw the labour market overheating, but I didn&rsquo t really see evidence here of that,&rdquo Yellen added. The Federal Reserve has said the labour market would need to soften in order to get price pressures down. But it maintained that a painful recession could be avoided, even as it recommitted at its last policy meeting in September on the need to keep interest rates elevated for an extended period. Officials are debating whether to raise the policy rate one more time this year or hold it throughout most of 2024. The federal funds rate stands at a 22-year high of 5.25-5.5 per cent following one of the central bank&rsquo s most forceful efforts to raise borrowing costs in decades. Speaking on Monday, Philip Jefferson, the Fed&rsquo s second-in-command, doubled down on the need for the central bank to &ldquo proceed carefully&rdquo with its forthcoming rate decisions, emphasising that he would incorporate rising Treasury yields into his assessment of whether tighter monetary policy is necessary. In separate comments, Dallas Fed president Lorie Logan went so far as to say that the recent move in financial conditions could offset the need for the central bank to take further action. Yellen rejected concerns that banks could suffer a repeat of the turmoil earlier this year that followed a sharp jump in borrowing costs. Weakened banks had taken steps to address their vulnerabilities, she said. This included paring back uninsured deposits, which make a lender susceptible to a run if customers get spooked. Moreover, she said credit quality on the whole was &ldquo very solid&rdquo . &ldquo [With] the rate rise in and of itself, it&rsquo s not obvious that it is putting a huge amount of pressure on households or businesses,&rdquo she said. At the annual meetings, the Treasury secretary is expected to focus on efforts to shore up the financial firepower of the World Bank and the IMF. The US wants to increase support to emerging and developing economies, tackle climate change more directly and counter China&rsquo s growing international influence. The effort to rally countries to inject more capital into these multilateral institutions does not address the issue of underrepresentation for countries such as China and emerging economies, which have less voting power than their economic standings might suggest. But Yellen acknowledged that was a debate for the future. Recommended Markets InsightEdward Yardeni The bond vigilantes are back US Treasury secretary Janet Yellen &ldquo We think the formula needs to be reconsidered,&rdquo she said of the IMF&rsquo s quota system, in which the US is the biggest shareholder and China, despite being the world&rsquo s second-largest economy, retains the third most powerful weight behind Japan. Beyond the relative size of each respective economy, Yellen said: &ldquo It is also important for China to live up to the norms of the institution when it comes to things like co-operation on debt restructuring and things like foreign exchange transparency.&rdquo Beijing has been criticised for delaying the resolution of thorny debt workouts, such as the one in Sri Lanka, for which it is the biggest official creditor. The Treasury secretary will also this week be pressed about US support for Ukraine, after Congress scrapped aid in order to avert a government shutdown last month. That funding is now in limbo amid political dysfunction in Washington following the removal of Kevin McCarthy as Speaker of the House of Representatives. Yellen said the Biden administration was &ldquo completely committed to getting this funding for Ukraine&rdquo , adding that officials &ldquo strongly believe that a majority of both Democrats and Republicans are supportive of that&rdquo . Event details and information Reviving the UK IPO Market Online 10 October 2023 Increasing public listings- which sectors have the highest growth potential? Presented byFT Live Copyright The Financial Times Limited 2023. All rights reserved. Latest on Global Economy
usdsgd1.3665
chartistkao1 ( Date: 10-Oct-2023 09:39) Posted:
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US' s hungry of high rate hikes to above 6% result in
HONG KONG (Oct 9): China' s Country Garden may announce a restructuring of its offshore debt soon, local media reported, while bondholders of embattled peer China Evergrande Group raised concerns about a possible liquidation as its debt plans floundered.
Country Garden, which missed two dollar interest payments last month, has two coupons totalling US$66.8 million (RM316.1 million) coming due on Monday. Media outlet Cailianshe said the company may announce a restructuring soon.
The developer declined to comment on the media report and whether it has made any payments.
Country Garden has US$10.96 billion offshore bonds and 42.4 billion yuan worth of loans not denominated in yuan. If it defaults, these debts will need to be restructured, and the company or its assets also risk liquidation by creditors.
The coupons due on Monday are tied to Country Garden' s 6.5% April 2024 and 7.25% April 2026 bonds. The payments have a 30-day grace period, but the developer faces a big test later this month, when its entire offshore debt could be deemed in default if it fails to pay a US$15 million September coupon by Oct 17.
China' s property sector has been hit by a debt crisis since 2021. Companies accounting for 40% of Chinese home sales &mdash mostly private property developers &mdash have defaulted on debt obligations, leaving many homes unfinished.
More than two years on, the crisis has deepened as confidence in both housing and capital markets dried up, further squeezing developers' liquidity.
A key bondholder group of Evergrande said in a statement on Monday it was surprised by Evergrande' s recent announcement that its offshore debt restructuring plan failed to meet regulatory requirements.
Evergrande, which is at the centre of China' s debt crisis, said late last month that its billionaire founder was being investigated over unspecified crimes. It has also said it was unable to issue new debt &mdash a crucial step in a restructuring &mdash due to an ongoing investigation of its main unit.
The bondholder group said it had not been given any documents or filings from Evergrande despite repeated requests, and it urged the developer to seek a resolution from regulators to allow the restructuring to proceed.
" This is the only way the cloud of uncertainty surrounding the regulatory issues can be resolved," it said. " Until then, the base case is that China Evergrande Group will be liquidated at the next winding up hearing on October 30, 2023."
Evergrande did not respond to a request for comment from Reuters.
Beijing has rolled out a range of support measures in recent months to revive the sector, which makes up about a quarter of the world' s second-largest economy.
Some analysts, however, say more measures are needed.
In a research note on Friday, UBS said property sales growth in major cities likely stayed weak in September, suggesting a limited rebound of sales despite more supportive measures to ease the property crisis.
China' s average daily home sales based on floor area during the Golden Week holiday were down 17% from a year ago, according to China Index Academy on Saturday.
The market is closely watching whether Country Garden can manage to dodge default again by making payments at the last minute.
In September, Country Garden won approval from its onshore creditors to extend yuan bond payments, and in the same month made coupon payments on the offshore markets in the last hours of end of a grace period.
But the developer has not yet paid a US$15 million coupon due Sept 17 and another US$40 million coupon due on Sept 27, both of which have 30-day grace periods.
Shares in Country Garden fell more than 6% on Monday, while Evergrande Group shares tumbled 11%, compared to a 1.9% fall in the Hang Seng Mainland Properties Index.
Shares of unit China Evergrande New Energy Vehicle Group were volatile after it said on Sunday a share sale plan with US-listed NWTN had been halted amid " significant uncertainties" tied to Evergrande group.
The stock, which had been suspended since Sept. 28, traded between a 10% fall and a 9% gain.
HONG KONG (Oct 9): China' s Country Garden may announce a restructuring of its offshore debt soon, local media reported, while bondholders of embattled peer China Evergrande Group raised concerns about a possible liquidation as its debt plans floundered.
Country Garden, which missed two dollar interest payments last month, has two coupons totalling US$66.8 million (RM316.1 million) coming due on Monday. Media outlet Cailianshe said the company may announce a restructuring soon.
The developer declined to comment on the media report and whether it has made any payments.
Country Garden has US$10.96 billion offshore bonds and 42.4 billion yuan worth of loans not denominated in yuan. If it defaults, these debts will need to be restructured, and the company or its assets also risk liquidation by creditors.
The coupons due on Monday are tied to Country Garden' s 6.5% April 2024 and 7.25% April 2026 bonds. The payments have a 30-day grace period, but the developer faces a big test later this month, when its entire offshore debt could be deemed in default if it fails to pay a US$15 million September coupon by Oct 17.
China' s property sector has been hit by a debt crisis since 2021. Companies accounting for 40% of Chinese home sales &mdash mostly private property developers &mdash have defaulted on debt obligations, leaving many homes unfinished.
More than two years on, the crisis has deepened as confidence in both housing and capital markets dried up, further squeezing developers' liquidity.
A key bondholder group of Evergrande said in a statement on Monday it was surprised by Evergrande' s recent announcement that its offshore debt restructuring plan failed to meet regulatory requirements.
Evergrande, which is at the centre of China' s debt crisis, said late last month that its billionaire founder was being investigated over unspecified crimes. It has also said it was unable to issue new debt &mdash a crucial step in a restructuring &mdash due to an ongoing investigation of its main unit.
The bondholder group said it had not been given any documents or filings from Evergrande despite repeated requests, and it urged the developer to seek a resolution from regulators to allow the restructuring to proceed.
" This is the only way the cloud of uncertainty surrounding the regulatory issues can be resolved," it said. " Until then, the base case is that China Evergrande Group will be liquidated at the next winding up hearing on October 30, 2023."
Evergrande did not respond to a request for comment from Reuters.
Beijing support
Some market participants are now betting on authorities stepping in to manage the fallout, as a messy collapse of Evergrande could rip through the already-sputtering economy. The property giant has hundreds of thousands of unfinished homes across the country and $300 billion worth of liabilities at home in China alone.Beijing has rolled out a range of support measures in recent months to revive the sector, which makes up about a quarter of the world' s second-largest economy.
Some analysts, however, say more measures are needed.
In a research note on Friday, UBS said property sales growth in major cities likely stayed weak in September, suggesting a limited rebound of sales despite more supportive measures to ease the property crisis.
China' s average daily home sales based on floor area during the Golden Week holiday were down 17% from a year ago, according to China Index Academy on Saturday.
The market is closely watching whether Country Garden can manage to dodge default again by making payments at the last minute.
In September, Country Garden won approval from its onshore creditors to extend yuan bond payments, and in the same month made coupon payments on the offshore markets in the last hours of end of a grace period.
But the developer has not yet paid a US$15 million coupon due Sept 17 and another US$40 million coupon due on Sept 27, both of which have 30-day grace periods.
Shares in Country Garden fell more than 6% on Monday, while Evergrande Group shares tumbled 11%, compared to a 1.9% fall in the Hang Seng Mainland Properties Index.
Shares of unit China Evergrande New Energy Vehicle Group were volatile after it said on Sunday a share sale plan with US-listed NWTN had been halted amid " significant uncertainties" tied to Evergrande group.
The stock, which had been suspended since Sept. 28, traded between a 10% fall and a 9% gain.
chartistkao1 ( Date: 10-Oct-2023 09:37) Posted:
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must use solar,wiund,water or bicyle to solve the dirty high oil price in 2024
ONDON (Oct 9): Oil prices surged more than 3% on Monday as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears that a wider conflict could impact oil supply from the Middle East.Brent crude was up US$3.07, or 3.6%, to US$87.65 a barrel by 1341 GMT, while US West Texas Intermediate crude was at US$86.15 a barrel, up US$3.36 or about 4.1%.
Both benchmarks spiked by more than US$4 a barrel earlier in the session.
The surge reversed last week' s downtrend &mdash the largest weekly decline since March &mdash in which Brent fell about 11% and WTI retreated more than 8% as a darkening macroeconomic outlook intensified concerns about global demand.
" The attack on Israel has added some additional risk premium to oil prices as the market is already extremely tight as a result of the Opec+ output restrictions and this could in theory squeeze supply further," said OANDA Craig Erlam.
Hamas on Saturday launched the largest military assault on Israel in decades, triggering a wave of retaliatory Israeli air strikes on Gaza.
The eruption of violence threatens to derail US efforts to broker a rapprochement between Saudi Arabia and Israel, in which the kingdom would normalise ties with Israel in return for a defence deal between Washington and Riyadh.
Saudi officials reportedly on Friday told the White House that they were willing to raise output next year as part of the proposed Israel deal.
Riyadh and Moscow have agreed to a combined 1.3 million barrels per day (bpd) voluntary cut until the end of 2023.
Analysts suggested the implications of the conflict could include a potential slowdown in Iranian exports, which have grown significantly this year, despite US sanctions.
Iran' s production has risen by close to 600,000 bpd during the past year while crude stored on- and offshore has been sold into market, mitigating some of the tightness being orchestrated by Saudi Arabia and Russia, said Saxobank' s Ole Hansen.
" Should the spotlight turn towards Iran, there' s a possibility of stricter sanctions being imposed, potentially leading to supply constraints and tightening conditions within the market," he said.
ONDON (Oct 9): Oil prices surged more than 3% on Monday as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears that a wider conflict could impact oil supply from the Middle East.Brent crude was up US$3.07, or 3.6%, to US$87.65 a barrel by 1341 GMT, while US West Texas Intermediate crude was at US$86.15 a barrel, up US$3.36 or about 4.1%.
Both benchmarks spiked by more than US$4 a barrel earlier in the session.
The surge reversed last week' s downtrend &mdash the largest weekly decline since March &mdash in which Brent fell about 11% and WTI retreated more than 8% as a darkening macroeconomic outlook intensified concerns about global demand.
" The attack on Israel has added some additional risk premium to oil prices as the market is already extremely tight as a result of the Opec+ output restrictions and this could in theory squeeze supply further," said OANDA Craig Erlam.
Hamas on Saturday launched the largest military assault on Israel in decades, triggering a wave of retaliatory Israeli air strikes on Gaza.
The eruption of violence threatens to derail US efforts to broker a rapprochement between Saudi Arabia and Israel, in which the kingdom would normalise ties with Israel in return for a defence deal between Washington and Riyadh.
Saudi officials reportedly on Friday told the White House that they were willing to raise output next year as part of the proposed Israel deal.
Riyadh and Moscow have agreed to a combined 1.3 million barrels per day (bpd) voluntary cut until the end of 2023.
Analysts suggested the implications of the conflict could include a potential slowdown in Iranian exports, which have grown significantly this year, despite US sanctions.
Iran' s production has risen by close to 600,000 bpd during the past year while crude stored on- and offshore has been sold into market, mitigating some of the tightness being orchestrated by Saudi Arabia and Russia, said Saxobank' s Ole Hansen.
" Should the spotlight turn towards Iran, there' s a possibility of stricter sanctions being imposed, potentially leading to supply constraints and tightening conditions within the market," he said.
chartistkao1 ( Date: 10-Oct-2023 09:34) Posted:
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food crisis-do you need to eat every day?
KUALA LUMPUR (Oct 9): Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu suggested a hike in the ceiling price of local white rice be included in the upcoming Budget 2024, which will be tabled in Parliament on Friday.
He acknowledged the need to review the ceiling price of local white rice, which has been fixed at RM26 per 10kg since 2008 &mdash a move then to incentivise paddy farmers to boost local rice production.
" However, matters related to food security are shared by the Ministry of Finance, the Ministry of Economy, and the Ministry of Domestic Trade and Costs of Living.
&ldquo I will bring this matter up with the Finance Ministry and the prime minister to determine whether this proposal can be included in the upcoming budget," said Mohamad when winding up debate on the rice shortage issue at Dewan Rakyat on Monday.
Earlier, Titiwangsa Member of Parliament Datuk Johari Abdul Ghani urged the removal of the ceiling price to motivate paddy farmers to increase production, in order to address the current supply shortage of locally produced rice.
Johari suggested raising the ceiling price to RM32 per 10kg from the current RM26, while continuing to provide subsidies to B40 households nationwide.
" The current rice shortage has affected 3.2 million B40 households nationwide, and based on the suggestion of raising the ceiling price to RM32 per 10kg, the government would only need to allocate RM460 million to subsidise these B40 households," he stated.
Johari added that these subsidies would be a temporary measure, and the government can withdraw them once the supply of locally produced white rice returns to normal.
" We are currently facing a shortage of locally produced white rice, not a distribution issue. The government' s move does not address the main issue," he said.
Ronald Kiandee also urged the government to investigate allegations of manipulation in the sale of locally produced rice as imported rice.
He alleged that manufacturers were willing to buy rice from farmers at RM1,700 per metric tonne, even though the government had set a floor price of RM1,200.
" This should ring a bell within the ministry. Manufacturers willing to buy rice at a higher price than the government' s floor price suggests possible manipulation," he added.
Buying local rice at a higher price is likely to eat into local millers&rsquo profit margin, with the selling price capped by the government.
Malaysia is currently experiencing disruptions in the supply of locally produced rice, leading the government to impose a 100kg limit on purchases of locally produced white rice.
Meanwhile, the country' s sole rice importer, Bernas, has raised the price of imported rice to RM3,200 per tonne, up from RM2,350 per tonne. This increase is attributed to factors such as a weakening currency exchange rate, high operating costs, and the impact of the white rice export ban announced by India beginning July.
For more Parliament stories, click here.
KUALA LUMPUR (Oct 9): Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu suggested a hike in the ceiling price of local white rice be included in the upcoming Budget 2024, which will be tabled in Parliament on Friday.
He acknowledged the need to review the ceiling price of local white rice, which has been fixed at RM26 per 10kg since 2008 &mdash a move then to incentivise paddy farmers to boost local rice production.
" However, matters related to food security are shared by the Ministry of Finance, the Ministry of Economy, and the Ministry of Domestic Trade and Costs of Living.
&ldquo I will bring this matter up with the Finance Ministry and the prime minister to determine whether this proposal can be included in the upcoming budget," said Mohamad when winding up debate on the rice shortage issue at Dewan Rakyat on Monday.
Earlier, Titiwangsa Member of Parliament Datuk Johari Abdul Ghani urged the removal of the ceiling price to motivate paddy farmers to increase production, in order to address the current supply shortage of locally produced rice.
Johari suggested raising the ceiling price to RM32 per 10kg from the current RM26, while continuing to provide subsidies to B40 households nationwide.
" The current rice shortage has affected 3.2 million B40 households nationwide, and based on the suggestion of raising the ceiling price to RM32 per 10kg, the government would only need to allocate RM460 million to subsidise these B40 households," he stated.
Johari added that these subsidies would be a temporary measure, and the government can withdraw them once the supply of locally produced white rice returns to normal.
Address rice shortage, not distribution
Meanwhile, former agriculture minister Ronald Kiandee (PN-Beluran) criticised the government' s decision to instruct the Federal Agricultural Marketing Authority (FAMA) and the Farmers&rsquo Organization Committee (LPP) to act as distributors of local white rice." We are currently facing a shortage of locally produced white rice, not a distribution issue. The government' s move does not address the main issue," he said.
Ronald Kiandee also urged the government to investigate allegations of manipulation in the sale of locally produced rice as imported rice.
He alleged that manufacturers were willing to buy rice from farmers at RM1,700 per metric tonne, even though the government had set a floor price of RM1,200.
" This should ring a bell within the ministry. Manufacturers willing to buy rice at a higher price than the government' s floor price suggests possible manipulation," he added.
Buying local rice at a higher price is likely to eat into local millers&rsquo profit margin, with the selling price capped by the government.
Malaysia is currently experiencing disruptions in the supply of locally produced rice, leading the government to impose a 100kg limit on purchases of locally produced white rice.
Meanwhile, the country' s sole rice importer, Bernas, has raised the price of imported rice to RM3,200 per tonne, up from RM2,350 per tonne. This increase is attributed to factors such as a weakening currency exchange rate, high operating costs, and the impact of the white rice export ban announced by India beginning July.
For more Parliament stories, click here.
chartistkao1 ( Date: 10-Oct-2023 09:32) Posted:
|
UALA LUMPUR (Oct 9): The Finance Ministry has agreed to provide a government guarantee for the Armed Forces Fund Board (LTAT) to take out a RM2 billion loan to undertake the general offer it proposed to privatise its 68.01%-controlled Boustead Plantations Bhd (BPlant) at RM1.55 per share.This was revealed by Defence Minister Datuk Seri Mohamad Hassan in Dewan Rakyat on Monday. LTAT is expected to fork out RM1.11 billion to acquire the remaining 716.66 million shares that are equivalent to a 31.99% stake in BPlant that it does not control.
&ldquo In accordance with the Cabinet&rsquo s decision, the Ministry of Finance has agreed to provide a government guarantee to LTAT to enable the fund to obtain a loan of RM2 billion from financial institutions to implement the general offer for BPlant,&rdquo said Mohamad, who is also the Rembau Member of Parliament.
Mohamad also reiterated that LTAT&rsquo s wholly-owned Boustead Holdings Bhd has various short-term debt obligations to meet. These include the repayment of RM159 million in revolving credit facilities as well as the redemption of RM607 million in perpetual sukuk by December this year, and the payment of RM1.65 billion in Islamic Medium-Term Notes (IMTNs) by September 2024, Mohamad said.
Before the year is out, Boustead, which was privatised by LTAT earlier this year, needs RM800 million to meet its debt obligations, Mohamad said last month.
According to him on Monday, Boustead group' s total debts now amount to RM6.8 billion.
LTAT had originally proposed to, with Boustead, dispose of a 33% stake plus one share in BPLant to Kuala Lumpur Kepong Bhd, before jointly extending a mandatory general offer at RM1.55 per share or a total of RM1.11 billion to acquire the remaining 31.99% stake in BPlant that they do not own. This would have resulted in KLK controlling a 65% stake in the privatised BPlant, with LTAT holding the other 35%.
The 33% plus one share stake disposal would have seen LTAT and Boustead receive RM1.15 billion from KLK, which would have helped Boustead address its debt obligations.
But with KLK' s offer off the table now, LTAT has to fork out the RM1.11 billion on its own to proceed with the general offer at the same price point. To fund this, it will have to take on more debt, for which the government will guarantee.
In a press conference in Dewan Rakyat on Monday, Mohamad took offence to MPs using the term &ldquo bailout&rdquo to describe the government' s decision to guarantee LTAT&rsquo s RM2 billion loan.
&ldquo It is not a bailout, the government didn&rsquo t pay with cash. We need to proceed with the general offer and (meet Boustead' s) immediate debt requirements,&rdquo he said, adding that the government guarantee would enable LTAT to secure new borrowings at a lower interest rate.
A bailout, he said, is only for a company that is insolvent. &ldquo LTAT is very strong, it has a lot of money,&rdquo he added.
KLK' s proposed acquisition of the 33% stake plus one share in BPlant officially fell through on Oct 4, with the group saying that conditions precedent under the strategic collaboration agreement were not expected to be satisfied by the twice-extended deadline of Oct 6.
Speculation that the deal was off had hit BPlant shares a few days before KLK announced the deal was off, with BPlant slumping to as low as RM1.27 at the start of the month. LTAT' s subsequent announcement that it would proceed with the privatisation of BPlant on its own had helped to shore up the falling shares.
BPlant shares closed one sen or 0.72% higher at RM1.40 on Monday, giving the group a market capitalisation of RM3.14 billion.
For more Parliament stories, click here.
&ldquo In accordance with the Cabinet&rsquo s decision, the Ministry of Finance has agreed to provide a government guarantee to LTAT to enable the fund to obtain a loan of RM2 billion from financial institutions to implement the general offer for BPlant,&rdquo said Mohamad, who is also the Rembau Member of Parliament.
Mohamad also reiterated that LTAT&rsquo s wholly-owned Boustead Holdings Bhd has various short-term debt obligations to meet. These include the repayment of RM159 million in revolving credit facilities as well as the redemption of RM607 million in perpetual sukuk by December this year, and the payment of RM1.65 billion in Islamic Medium-Term Notes (IMTNs) by September 2024, Mohamad said.
Before the year is out, Boustead, which was privatised by LTAT earlier this year, needs RM800 million to meet its debt obligations, Mohamad said last month.
According to him on Monday, Boustead group' s total debts now amount to RM6.8 billion.
LTAT had originally proposed to, with Boustead, dispose of a 33% stake plus one share in BPLant to Kuala Lumpur Kepong Bhd, before jointly extending a mandatory general offer at RM1.55 per share or a total of RM1.11 billion to acquire the remaining 31.99% stake in BPlant that they do not own. This would have resulted in KLK controlling a 65% stake in the privatised BPlant, with LTAT holding the other 35%.
The 33% plus one share stake disposal would have seen LTAT and Boustead receive RM1.15 billion from KLK, which would have helped Boustead address its debt obligations.
But with KLK' s offer off the table now, LTAT has to fork out the RM1.11 billion on its own to proceed with the general offer at the same price point. To fund this, it will have to take on more debt, for which the government will guarantee.
Not a bailout, but government guarantee
In a press conference in Dewan Rakyat on Monday, Mohamad took offence to MPs using the term &ldquo bailout&rdquo to describe the government' s decision to guarantee LTAT&rsquo s RM2 billion loan.&ldquo It is not a bailout, the government didn&rsquo t pay with cash. We need to proceed with the general offer and (meet Boustead' s) immediate debt requirements,&rdquo he said, adding that the government guarantee would enable LTAT to secure new borrowings at a lower interest rate.
A bailout, he said, is only for a company that is insolvent. &ldquo LTAT is very strong, it has a lot of money,&rdquo he added.
KLK' s proposed acquisition of the 33% stake plus one share in BPlant officially fell through on Oct 4, with the group saying that conditions precedent under the strategic collaboration agreement were not expected to be satisfied by the twice-extended deadline of Oct 6.
Speculation that the deal was off had hit BPlant shares a few days before KLK announced the deal was off, with BPlant slumping to as low as RM1.27 at the start of the month. LTAT' s subsequent announcement that it would proceed with the privatisation of BPlant on its own had helped to shore up the falling shares.
BPlant shares closed one sen or 0.72% higher at RM1.40 on Monday, giving the group a market capitalisation of RM3.14 billion.
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