atans1

HoHoHo: Heads or tails, StanChart can’t win/ China banks

In Temasek on 01/09/2015 at 1:26 pm

Standard Chartered’s Puzzling Currency Questions The more dollar loans it has made in emerging markets, the more bad debts it will face as the renminbi, ringgit or rupiah fall. However, if it has lent widely in local currency instead, credit quality may remain stronger, but good loans will still produce weaker revenues in dollars, the bank’s reporting currency.

(NYT Dealbook)

The three major Chinese banks that Temasek invested in ICBC, BoC and CCB  reported only marginal gains in net profit for the first half of the year, while official measures of non-performing loans surged.

Bad debts are already eating into profitability. Increased provisions are the main reason why China’s big four banks reported little or no growth in pre-tax profit in the first half. Industrial and Commercial Bank of China, China Construction Bank, Bank of China now classify more than 1.4 percent of their loans as non-performing. Eighteen months ago, the ratio was around 1 percent.

http://blogs.reuters.com/breakingviews/2015/08/31/slowing-growth-exposes-chinese-banks-debt-debris/

 

Perils of only reading TOC/ Will Ravi change mind again?

In Humour on 01/09/2015 at 4:45 am

A little light entertainment with a nasty dig at the NSP and its president.

Must skim MSM, cannot rely on New Media

Reading only TOC and other anti-PAP new media outlets can make an otherwise intelligent person look silly.

Mrs Chong-Aruldoss (I know her) representing the Chiams’ Party (Yip it’s her blood, and that of P Ravi,that the Chiams are feasting on to keep alive) questioned why the findings of the AGO’s annual audit on public agencies were “met with muted responses” from the Government.

Huh? The constructive, nation-building media* were full of reports. And from personal experience, I know, govt bodies work themselves into a frenzy whenever the AGO criticises them, unlike the WP who are as yaya papayas as Amos Yee, when the AGO ticks it off; saying  it accepts that the AGO is professional and independent. but then gives it the finger by ignoring it. In govt departments and agencies, not being mentioned by the AGO is an impt KPI for senior officers.

Ms Sim from the PAP rightly pointed out that the agencies’ reactions have been swift after the report was released. They have owned up to lapses and cases of non-compliance, and have taken action to rectify the lapses. All the monies were accounted for and no public funds were lost. 

(CNA)

*Here’s a story about that parachutist extraordinaire (Three GEs, three GRCS, three different parties): A few yrs ago he criticised the mainstream media for biased news reporting of a non-political story. I emailed him, saying that actually the ST carried a very fair report, it was MediaCorp that didn’t. He emailed back saying he only read the free stuff. And blogged on that basis.

I lost all respect for his views after that.

Will M Ravi change mind again?

Later today, we’ll know if he will really be standing in GE 2015.

When I read that M Ravi was in the RP’s line-up for AMK, I couldn’t help but think that he joined the wrong party. Given the flip flops (think the decision to stand in Fortress Kate Spade and the strange issue of rowing over a permit  http://www.theonlinecitizen.com/2015/03/nsps-back-track-on-presidential-appeal-in-need-of-reason/) of the No Subtance Party, he’d be really suitable to be a candidate for the National Stupid Party whose president claims that it was the fault of his lawyer and banker that he once a upon pleaded guilty to charges of corruption.

However as a young man with no legal experience, I took the professional advice of both my lawyer and bankers, who explained that as this was a technical breach of the law, it was far simpler to plead guilty, pay the fine and move on with life.

I remember clearly the urge to stand up and clear my name in court, as the charges not only frightened me but also went against every grain of what I stood and stand for morally. However, I deferred to the advice of my legal and financial advisors. In hindsight, I wish I had not done so.

Sorry for the digression. Back to M Ravi. Earlier on 12 August M Ravi had said he wasn’t standing as a RP candidate in AMK*.

And earlier this year, Ravi announced that he planned to stand in AMK, fielding a team of independents including New Citizen Han Hui Hui.

He then said he had allocated $1m to fund the campaign, will this money be available for RP’s fight in AMK?

In February this year M Ravi, publicly said ” he has set aside $1 million, saved over the years, for his campaign” – See more at:http://news.asiaone.com/news/singapore/opposition-veteran-lawyer-take-polls-position#sthash.ox58eIpv.dpuf. He planned to take on the PM in AMK GRC in the next GE, if the s/o JBJ’s party didn’t contest AMK.

Let’s put this $1m fighting fund into perspective:

— The 170 candidates who took part in the General Election 2011 spent some $5.5 million on the polls: so Ravi is planning to spend 18% of that amount in just one GRC;

— PM’s AMK team team spent $340,905 in that yr (second highest*), so Ravi is planning to spend 3 times more than PM’s team (he has to be careful not to run run foul of the $4.00 per voter that any party is allowed to spend); and

–. surely his relatives will vote for him? “He said he picked the six-MP constituency because 25 per cent of its residents are his relatives, saying he has Chinese and Indian roots. The GRC had about 179,000 voters in the last polls. – See more at:http://news.asiaone.com/news/singapore/opposition-veteran-lawyer-take-polls-position#sthash.ox58eIpv.dpuf  It seems Ravi has a low opinion of his many AMK relatives seeing that he plans to spend so much money. Surely, they’ll vote for “kaki lang”, “countryman” for free?

https://atans1.wordpress.com/2015/02/09/analysing-ravis-1m-amk-election-fund/

*Statement on Candidacy

Following my presence in a recent walkabout in AMK GRC with the Reform Party (RP) and a short interview I gave, speculation has been rife that I will run as a candidate for the RP.

I knew Mr J B Jeyaretnam, the founder of the RP, both as a friend and a colleague at the Bar. He was a man who always fought for the common man and dedicated a life of service to his fellow man. I am indeed honoured to have worked with him. He set up the Reform Party before his passing and it’s indeed wonderful to see his work and vision carried on by Kenneth in trying circumstances.

I am grateful that Kenneth allowed me to volunteer my services in some small way. I have seen his dedication and commitment to the people of AMK GRC. I see the same spirit in Roy Ngerng in wanting to serve the people and being the voice for the under-privileged in society.

I have been a lawyer for 18 years and I have always tried to serve my clients to the best of my ability. It’s a calling I take very seriously.

These few days, I have given considerable thought as to what my role and service to society must be. It is to the calling of service to the legal and judicial system but most of all a calling of service to my clients who depend on me to fight for them.

It is therefore prudent and crucial that I continue to maintain my focus on this and serve my clients diligently when I resume my legal practice shortly.  It is here that my focus and service must lie.

Accordingly I have decided that my service now is best rendered in this role.

I thank the Reform Party for allowing me to witness its work and outreach up close.

I wish them, and Roy Ngerng, well in their service to the public.

Thank You,

 

 

 

 

 

Sotong investors/ Some are moving on

In China, Emerging markets on 31/08/2015 at 1:43 pm

INVESTORS SEEK SIGNAL IN THE NOISE Asian markets continued to soar on Friday, on the back of a global rebound on Thursday. The fear was palpable just days ago, but by the end of Thursday, the gloom had dissipated, DealBook’s Peter Eavis reports. The Standard & Poor’s 500-stock index had climbed 6 percent from the low of Tuesday’s closeby the end of Thursday.

The positive trend continued during Asian trading on Friday. Stocks in Shanghai closed up 4.82 percent after another late-day surge, while the Nikkei 225 finished the day up about 3 percent.

Bystanders were left struggling to comprehend the gyrations. Even Wall Street pundits are seeing mixed messages.

At Tuesday’s low, a bear market – when stocks decline 20 percent or more – did not seem out of the question. But after Thursday’s performance, it seemed plausible that the six-year bull market that started in 2009 might resume.

There was, in fact, a string of positive economic data released this week. Spain’s economy is now growing at a rate of over 3 percent, while revised gross domestic product numbers showed that the United States economy grew at a 3.7 percent rate.

There are still plenty of problems that could drag down global growth. China’s leaders have intervened to shore up the stock market, promote bank lending and loosen monetary policy, but these moves could well stifle the role of market forces.

The pressure on emerging markets is unlikely to go away. Companies that have borrowed in dollars may find it harder to pay back debt as their currencies lose value against the dollar. The resulting slow growth in developing countries might squeeze demand for goods and services from the United States and Europe, dampening growth there too.

If this happened, central banks like the Federal Reserve could step in to stimulate economies. But their intervention can create uncertainty over the long term as investors wonder whether stock and bond prices are rising because of central bank stimulus and worry about what will happen once that support is pulled away. Analysts see problems in the underlying economy that they say central bank stimulus, or quantitative easing, cannot fix.

When nobody knows when the stimulus will end, markets move unpredictably, as investors find different ways to interpret pronouncements from central bankers.

The one reassurance is that in recent history, short-lived stock market corrections that have not turned into bear markets typically have not stopped businesses from investing and people from spending.

 

James B. Stewart: Top Money Managers Take Their Losses, and Move On Fund investors are looking for opportunities in global stock markets, where share prices have been battered in recent days.

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