2016 Recession Year? Gloom and doom 2017!

[tenyawph]

We now have 2 things affecting us:

 

1) Haze

Indonesia has warned us that haze could hit Singapore over the next few days (Today Newspaper)

 

2) Zika Virus outbreak

As of Tuesday, 82 locally transmitted cases now (Today Newspaper)

 

How will this impact tourism in Singapore in the next few months?  Will our economy be affected as badly like in the SARS days in 2003?  

 

It is too early to tell.  Let's cross our fingers and hope everything turns out well.  If not, our economy will go into a recession.  Not good........

 

 

 

 

 

[Rayleigh]

If WHO starts travel advisory to Singapore, we will be in for a rough time.

Edited August 30, 2016 by Rayleigh

[Ktglfc]

  On 8/30/2016 at 9:56 PM, tenyawph said:

We now have 2 things affecting us:

 

1) Haze

Indonesia has warned us that haze could hit Singapore over the next few days (Today Newspaper)

 

2) Zika Virus outbreak

As of Tuesday, 82 locally transmitted cases now (Today Newspaper)

 

How will this impact tourism in Singapore in the next few months?  Will our economy be affected as badly like in the SARS days in 2003?  

 

It is too early to tell.  Let's cross our fingers and hope everything turns out well.  If not, our economy will go into a recession.  Not good........

 

 

A lot of countries already issued travel alerts to Singapore ...

 

Gonna affect our tourism for sure ... and if we still can't control this virus ... it will definitely affect our lifestyle ... and also our birthrate ...

 

Gosh !

[inlinesix]

http://www.wsj.com/articles/troubled-hanjin-shipping-to-sell-healthy-assets-to-rival-1472611190

 

South Korea’s Hanjin Shipping Files for Bankruptcy Protection

 

 

  Quote

SEOUL—South Korea’s Hanjin Shipping Co. filed for receivership Wednesday, as shipping companies world-wide grapple with overcapacity amid a slump in global trade.

The filing with the Seoul Central District Court came just a day after the company’s creditors discontinued providing a lifeline after financial assistance of more than 1 trillion won ($896 million) failed to keep it afloat.

The court will soon determine whether Hanjin, the country’s largest container operator by capacity, should be liquidated or given a chance to survive after restructuring, the company said.

Hanjin’s receivership, which is a form of creditor protection, comes as shipping companies world-wide have been hit by years of slumping demand—particularly from China—as global trade has slowed. Some companies have been forced to sell vessels at a discount while a handful of smaller operators have gone bankrupt.

Hanjin, the world’s seventh-largest shipping line by capacity, would become the biggest company in the industry to go under if it is ordered to fold.

State-run Korea Development Bank, the company’s main creditor, on Tuesday withdrew its support, saying a funding plan by Hanjin’s parent group wasn’t sufficient to tackle the shipper’s debt, which stood at $5.5 billion at the end of June.

Hanjin—a unit of the conglomerate that controls Korean Air Lines Co. —has faced an acute credit crunch after posting a loss each year from 2011 to 2014, as slowing global trade and overcapacity depressed freight rates. It has been under a creditor-led debt restructuring program since May.

The Korean government said it wants Hanjin’s domestic rival, Hyundai Merchant Marine Co. , to buy healthy assets from the troubled company. It rejected the idea of a merger.

A Hyundai Merchant spokesman said the company would discuss the matter with the government and Korea Development Bank. The state-run bank is also Hyundai Merchant’s main creditor. Hyundai Merchant, the country’s second-largest shipping company, is on a recovery track under a creditor-led debt restructuring program.

Government officials said Hanjin’s receivership could also lead to the company’s exclusion from a global shipping alliance, reducing its chances of survival.

Hanjin is part of The Alliance, a six-member group that was formed in May to rival the dominance of global giants Maersk Line and Mediterranean Shipping Co. Hanjin said its relations with the alliance would end if the company ended up in bankruptcy.

Wednesday’s filing, however, is already having an impact on Hanjin’s operations.

Ports—including those in Shanghai and Xiamen in China, Valencia, Spain, and Savannah, Ga.—had blocked access to Hanjin ships due to concerns that they wouldn't be able to pay fees, according to a Hanjin spokeswoman.

[tenyawph]

Talking about Hanjin Shipping, Temasek Holdings is very fortunate to have off-loaded its loss-making Neptune Orient Lines (NOL) to CMA.

 

This loss-making NOL has been bleeding for a few years.  Reminds me of this very important lesson in stock investing.  When the going gets tough, the tough gets ridden off.  Do not hold on to a loss-making company's share.  Recognise its imminent demise and get out while you can.  It is better to suffer a loss than a total wipe-out of your initial investment.

 

 

 

  

[Kusje]

  On 8/31/2016 at 10:23 AM, tenyawph said:

Talking about Hanjin Shipping, Temasek Holdings is very fortunate to have off-loaded its loss-making Neptune Orient Lines (NOL) to CMA.

 

This loss-making NOL has been bleeding for a few years.  Reminds me of this very important lesson in stock investing.  When the going gets tough, the tough gets ridden off.  Do not hold on to a loss-making company's share.  Recognise its imminent demise and get out while you can.  It is better to suffer a loss than a total wipe-out of your initial investment.

 

This logic is only true for minority shareholders leh.

 

In Temasek's case, they are the ones responsible for the company's shitty performance. I understand that the shipping industry has been undergoing bad times but there are some who are still surviving and doing better than others - it has always been a cyclical industry where scale and diversity matters.

 

By selling off AET and APL logistics, they lost a lot of industry clout and ability to manage poor container rates.

Edited August 31, 2016 by Kusje

[racer0000]

this is a little older but an interesting watch regardless 

 

[tenyawph]

Here is reality:

 

Singapore mom-and-pop investors face losses as bond risks spread

 

http://www.businesstimes.com.sg/banking-finance/singapore-mom-and-pop-investors-face-losses-as-bond-risks-spread?link_time=1472612087#utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook&xtor=CS1-3

31 Aug 2016

 

[HONG KONG] Singapore millionaires stung by the misery of recent bond defaults now have company as the fallout threatens losses for mom-and-pop investors.

 

All four new issues of Singapore dollar-denominated notes targeted at individuals this year have dropped below the par sales value, as failures in the broader market stoke speculation nonpayments will spread.

 

The 5.3 per cent securities of Aspial Corp, a jewellery retailer and developer of high-rise condos, have dropped to 97 US cents from about 100 US cents at the end of July, according to exchange prices.

 

The 6 per cent perpetual bonds sold to mom-and-pop investors by water company Hyflux Ltd have declined to 95.4 US cents from about 100 US cents as recently as Aug 12, exchange prices show.

 

Retail investors in these bonds got their fingers burnt, for now.

 

With the local stock market going south slowly, looks like the only safe haven is fixed deposits now.

 

Standard & Chartered is offering an exclusive offer to qualified individuals: 

 

Earn up to 1.6% p.a. interest on Average Daily Balances when you deposit > $200,000 in your e$saver account from Sep 2016 to 28 Feb 2017.

 

1.6% p.a. interest for 6 months.  Good deal?

[Throttle2]

  On 9/2/2016 at 9:32 AM, tenyawph said:

Here is reality:

Singapore mom-and-pop investors face losses as bond risks spread

 

http://www.businesstimes.com.sg/banking-finance/singapore-mom-and-pop-investors-face-losses-as-bond-risks-spread?link_time=1472612087#utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook&xtor=CS1-3

31 Aug 2016

 

[HONG KONG] Singapore millionaires stung by the misery of recent bond defaults now have company as the fallout threatens losses for mom-and-pop investors.

 

All four new issues of Singapore dollar-denominated notes targeted at individuals this year have dropped below the par sales value, as failures in the broader market stoke speculation nonpayments will spread.

 

The 5.3 per cent securities of Aspial Corp, a jewellery retailer and developer of high-rise condos, have dropped to 97 US cents from about 100 US cents at the end of July, according to exchange prices.

 

The 6 per cent perpetual bonds sold to mom-and-pop investors by water company Hyflux Ltd have declined to 95.4 US cents from about 100 US cents as recently as Aug 12, exchange prices show.

 

Retail investors in these bonds got their fingers burnt, for now.

 

With the local stock market going south slowly, looks like the only safe haven is fixed deposits now.

 

Standard & Chartered is offering an exclusive offer to qualified individuals:

 

Earn up to 1.6% p.a. interest on Average Daily Balances when you deposit > $200,000 in your e$saver account from Sep 2016 to 28 Feb 2017.

 

1.6% p.a. interest for 6 months. Good deal?

1.6%pa cannot survive lah

[Wt_know]

sibei irony ... stock rise because of "poor" job report simply because the likelihood of rate hike is gone ... lol

so in order for market to cheong ... it's better to have higher unemployment ... muahahahaha

Edited September 2, 2016 by Wt_know

[BanCoe]

  On 9/2/2016 at 11:01 AM, Throttle2 said:

1.6%pa cannot survive lah

 

Even govt Singapore Savings Bonds also not much only like same amount about  1.7%  provided you keep for 10 years some more ;

 

Opening this type of Stan Chart New accounts got surely some Devil in the fine print like must maintain for so and so period  if not kenna pay so and so much and also it could be a tier level type where first 20K is x % and next 50 K x% and finally above 200K is 1.6% ........ better check first ..... Banks like to play around one    

[tenyawph]

  On 9/3/2016 at 1:36 AM, BanCoe said:

Opening this type of Stan Chart New accounts got surely some Devil in the fine print like must maintain for so and so period  if not kenna pay so and so much and also it could be a tier level type where first 20K is x % and next 50 K x% and finally above 200K is 1.6% ........ better check first ..... Banks like to play around one    

 

If I read correctly, it is putting and maintaining a minimum of $100K in the e$aver account from Sep 2016 to Feb 2017.  

 

Looking at the other major banks, this promotional rate by Standard Chartered looks attractive.

 

Diversification in investment is important.  Put money in different areas such as fixed deposit, stock market, property, etc.

[Lala81]

  On 9/3/2016 at 3:25 AM, tenyawph said:

Standard Chartered IMG_5532.JPG

 

If I read correctly, it is putting and maintaining a minimum of $100K in the e$aver account from Sep 2016 to Feb 2017.  

 

Looking at the other major banks, this promotional rate by Standard Chartered looks attractive.

Fixed Deposit rates of major banks.jpg

 

Diversification in investment is important.  Put money in different areas such as fixed deposit, stock market, property, etc.

 

i always rather fixed deposits.

They can change the terms few months down the road.

[Ktglfc]

  On 9/2/2016 at 4:26 PM, Wt_know said:

sibei irony ... stock rise because of "poor" job report simply because the likelihood of rate hike is gone ... lol

so in order for market to cheong ... it's better to have higher unemployment ... muahahahaha

 

Either way, it's just not good for the economy as a whole ...

[Jamesc]

Better to keep only $50,000 in any bank account.

 

If the bank goes bust only $50,000 is insured and

 

you lose the rest. If you have more than 50k open many

 

accounts. Some people think Singapore banks wont

 

go bust. No one thought that about Lehman Bros too.

 

[GLZT]

  On 9/3/2016 at 5:27 AM, Jamesc said:

Better to keep only $50,000 in any bank account.

 

If the bank goes bust only $50,000 is insured and

 

you lose the rest. If you have more than 50k open many

 

accounts. Some people think Singapore banks wont

 

go bust. No one thought that about Lehman Bros too.

 

But there are only that many banks in Singapore. For those with more than 700k what you advise?

[BanCoe]

  On 9/3/2016 at 9:57 AM, GLZT said:

But there are only that many banks in Singapore. For those with more than 700k what you advise?

Cum to my Bank Of Ban Coe and PM me anytime for friendly chat with my RM ( relationship Edited September 3, 2016 by BanCoe

[Porker]

  On 9/3/2016 at 9:57 AM, GLZT said:

But there are only that many banks in Singapore. For those with more than 700k what you advise?

 

For those with 700k and more, I suggest you keep the cash under the pillow and live frugally.

 

Rely on handouts both cheap and expensive as much as possible. As an example, you can ask your suppliers and online friends for Ritz Carlton mooncakes and Da Zhong Guo mooncakes respectively. And always eat from hawker centres and pretend you're a peasant.

 

You can always refer to @enye for advice if you aren't sure