News Blitz
Genting S'pore gets a billion reasons to smile
Q2 revenue rockets and profit hits S$397m as RWS churns out the cash
Fed resorting to tools Japan used in past decade
Quantitative easing - credit easing to Fed - failed to spur lending in Japan
(WASHINGTON) The Federal Reserve's decision to sustain the current level of its assets intensifies the focus of the central bank on policy tools similar to those used with little impact by Japan last decade.
July growth in Australian employment slows
(SYDNEY) Australian employment growth slowed in July, driving down the nation's currency as investors bet that the central bank would extend a pause in the most aggressive round of interest-rate increases by a member-nation of Group of 20.
Japan manuf mood at near 3-yr high: Reuters Tankan
TOKYO - Japanese manufacturers' confidence rose to the highest in nearly three years in August due to government stimulus, but companies forecast for the first time in three years that their sentiment will deteriorate as the strong yen threatens exporters' earnings, a Reuters poll showed.
China 'will not halt property tightening'
BEIJING - China will not relax its policies aimed at curbing speculation in the property market, Vice-Premier Li Keqiang said on Friday, according to state radio.
On an inspection of low-income housing in Beijing, Mr Li also reiterated that the government would step up its efforts to build more affordable housing.
Preparing for deflation
After worrying about inflation for months, many economists are now talking about deflation in the US. What should investors do to hedge against such a scenario?
Go for blue chips
Investors who want to maintain their stock weightings should consider 'high-quality, large, blue-chip companies that have balance-sheet strength', said Brian McMahon, chief investment officer at Thornburg Investment Management in Santa Fe, New Mexico. He said companies like Google and Microsoft often have an added advantage: dominance over their industries, enabling them to maintain their prices even if others in the industry start to lower theirs.
Stocks that pay dividends would also make sense, because the cash thrown off by these shares would be quite valuable in a deflationary environment.
In fact, said Mr Inker of GMO, if investors really fear deflation, they might consider increasing the cash in their portfolios. 'There's a strong case for building up dry powder,' he said. 'If something bad happens economically - whether it's deflation or inflation - that generally provides a good buying opportunity for investors who have some cash to put to work.' - NYT
US consumer prices rise 0.3% in July
WASHINGTON - Higher energy costs helped lift US consumer prices in July, the first rise in four months, according to a government report on Friday that could ease concerns about deflation.
US retail sales rebound in July, softness lingers
WASHINGTON - US retail sales rose in July in a hopeful sign for the economy, but the gains were concentrated in auto and petrol station sales, suggesting underlying momentum in consumer spending remains tame.
Sales climbed 0.4 per cent last month following a revised 0.3 per cent drop in June, the Commerce Department said on Friday. Economists polled by Reuters had been looking for a slightly firmer 0.5 per cent gain.
Germany posts record second quarter growth
FRANKFURT - A global economic recovery pushed German quarterly growth to a record 2.2 per cent in the second quarter of the year, data released Friday by the national statistics office showed.
Others
August 9, 2010, 12.18 pm (Singapore time)
China extends Japanese debt buying spree in June
TOKYO - China extended a record buying spree of Japanese debt in June as sovereign debt concerns buffeted the euro, purchasing a net US$5.9 billion of short-term bills although it was a net seller of longer dated notes.
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