https://sg.finance.yahoo.com/news/singapore-economy-grows-much-stronger-011839959.html
Our economy grew 2.9% in the 2nd quarter year on year. Hooray!
Wait....How come we don't feel the good economic growth?
Well, let's look at the GDP composition.
GDP = G + I + C + Net Export (X - M)
G= Government spending
I = Investments (FDI)
C = Consumption
Net Ex = X - M, Export - Import
GIC will impact Singaporeans more directly than Net Ex. Net Ex is more like trading which will result in trade surplus or trade deficit for Singapore.
Since C is a negligible component of Singapore GDP as we are a small nation with a small population, we can only rely on GI and Net Ex for boosting our GDP.
However, our good GDP growth is derived primarily from Net Ex this time. Therefore, we don't feel much impact from the good GDP figure unless you are in the trading industry.
Friday, August 11, 2017
Noble financial update!
https://finance.yahoo.com/news/noble-group-reports-1-75-121909015.html
Here's a synopsis of Noble's financial health:
Noble reported a net loss of $1.9b in the first half of 2017.
Noble reported net debt increased by $900m (at $3.8b) in the first half of 2017.
Noble wrote down $1.3b in the first half of 2017.
Noble has a $2b credit facility expiring in Oct 2017.
The last leg to fall will be a liquidity squeeze caused by an increase in commodity prices. Noble will have to put up more money to buy commodities when the prices rise just to maintain the same profit margin. This will make Noble keel over.
Here's a synopsis of Noble's financial health:
Noble reported a net loss of $1.9b in the first half of 2017.
Noble reported net debt increased by $900m (at $3.8b) in the first half of 2017.
Noble wrote down $1.3b in the first half of 2017.
Noble has a $2b credit facility expiring in Oct 2017.
The last leg to fall will be a liquidity squeeze caused by an increase in commodity prices. Noble will have to put up more money to buy commodities when the prices rise just to maintain the same profit margin. This will make Noble keel over.
Thursday, August 10, 2017
China has 100% secured communication now!
https://sg.finance.yahoo.com/news/china-uses-quantum-satellite-transmit-085800014.html
100% secured communication is very important especially during wartime. A secured communication will greatly improve the odds of winning in a war because enemies won't know your strategies and deployments.
It will also be good if we can use it for financial payment system because nobody can hack it.
100% secured communication is very important especially during wartime. A secured communication will greatly improve the odds of winning in a war because enemies won't know your strategies and deployments.
It will also be good if we can use it for financial payment system because nobody can hack it.
Philippine slams outside interference in South China Sea dispute.
http://en.people.cn/n3/2017/0809/c90000-9253229.html
Philippine is the claimant but USA, Japan and Australia want Philippine to enforce the PCA ruling.
What a joke!
Australia, do you want to abide by the PCA ruling against Australia before you call on others to abide it?
http://sg-stock.blogspot.sg/2016/09/australia-declares-that-pca-has-no.html
Philippine is the claimant but USA, Japan and Australia want Philippine to enforce the PCA ruling.
What a joke!
Australia, do you want to abide by the PCA ruling against Australia before you call on others to abide it?
http://sg-stock.blogspot.sg/2016/09/australia-declares-that-pca-has-no.html
Malaysia is using China radar to monitor Singapore.
http://www.todayonline.com/world/asia/china-offer-malaysia-radar-rocket-launchers-based-johor?cid=emarsys-today_TODAY%27s+morning+briefing+for+August+10%2C+2017_newsletter_10082017_today
The multiple rocket launchers' radar system has a range of 220km which will cover more than the whole of Singapore. This will monitor our military activities especially the USA navy based in Singapore.
Is our relationship with Malaysia going south?
The multiple rocket launchers' radar system has a range of 220km which will cover more than the whole of Singapore. This will monitor our military activities especially the USA navy based in Singapore.
Is our relationship with Malaysia going south?
Malaysia has scored another milestone achievement with China.
http://www.businesstimes.com.sg/government-economy/hard-pedalling-soft-power-china-helps-launch-us13b-belt-and-road-rail-project-in
Malaysia is really BOLEH!
Malaysia is improving by leaps and bounds now. It is having autonomous trains and is deeply involved in the BRI.
http://sg-stock.blogspot.sg/2017/08/wow-malaysia-will-have-autonomous.html
What has Singapore achieved so far? No deal above $10b with China.
It is really eye soring to see our neighbour progressing so well. Malaysia will overtake SG in on time.
Malaysia is improving by leaps and bounds now. It is having autonomous trains and is deeply involved in the BRI.
http://sg-stock.blogspot.sg/2017/08/wow-malaysia-will-have-autonomous.html
What has Singapore achieved so far? No deal above $10b with China.
It is really eye soring to see our neighbour progressing so well. Malaysia will overtake SG in on time.
Iceberg felt vindicated after Noble's writedown.
https://sg.finance.yahoo.com/news/noble-apos-giant-writedown-proves-102127119.html
Well, one cannot hide the truth forever. You can lie to a few people some time and you can lie to most people most of the time but you cannot lie to all the people all the time.
Well, one cannot hide the truth forever. You can lie to a few people some time and you can lie to most people most of the time but you cannot lie to all the people all the time.
Wednesday, August 9, 2017
China-India border war may start within 2 weeks time.
There is a rumour that Chinese businessmen are leaving India now. This is one of the indicators that a war will break out soon. China is warning Chinese businessmen to leave India so that they won't be held as hostages in a war break out.
Our PM Lee's national speech is worrisome!
https://sg.news.yahoo.com/pm-lee-hsien-loong-highlights-three-long-term-issues-singapore-tackle-123500869.html
This shows that he cannot bring Singapore forward anymore because he should give Singapore something to look forward but instead he's dwelling on something less grandeur. Maybe he would like to be a sociologist after his retirement.....sigh!
This shows that he cannot bring Singapore forward anymore because he should give Singapore something to look forward but instead he's dwelling on something less grandeur. Maybe he would like to be a sociologist after his retirement.....sigh!
Ship can sail through Arctic now!
We posted about this new Arctic shipping route previously.
http://sg-stock.blogspot.sg/2017/04/new-arctic-shipping-route.html
Tuesday, August 8, 2017
China has an implicit message for USA.
https://sg.news.yahoo.com/china-holds-wargames-north-korea-tensions-spike-061206844.html
This war game is to send an implicit message to the USA that yellow sea is out of bound for the USA if USA wants to attack NK.
This war game is to send an implicit message to the USA that yellow sea is out of bound for the USA if USA wants to attack NK.
South Korea is punishing Japan for its WW2 atrocities.
https://sg.news.yahoo.com/korean-court-orders-japans-mitsubishi-pay-over-war-051843656.html
Although WW2 has ended 70 years already, South Korea still cannot forgive and forget the atrocities committed by Japan because of Japan's denial. In this sense, China is more forgiving towards Japan despite the Nanjing Massacres.
Although WW2 has ended 70 years already, South Korea still cannot forgive and forget the atrocities committed by Japan because of Japan's denial. In this sense, China is more forgiving towards Japan despite the Nanjing Massacres.
There are sea lices in the sea. Beware when you wanna swim in the sea.
Economic 101 - Don't let the unemployment rate fool you!
In a perfect world, high economic growth will have low unemployment rate and low economic growth will have high unemployment rate. However, we do not live in a perfect world and there is a paradox in every theory. Therefore, we can have a low economic growth and a rising unemployment rate in an economy like Singapore. Rising unemployment rate seems like a benign factor in this case. How true is this?
The paradox arises from the definition of being unemployed. An unemployed person is considered unemployed if he is actively looking for a job but cannot get a job within 6 months. Thereafter, he is no longer considered unemployed because he will be categorized as out of the labour force as his interest in finding a job has disappeared after 6 months.
The labour force consists of employed and unemployed persons (Employed + Unemployed).
The calculation of the unemployment rate:
Unemployment rate = No. of unemployed / labour force
Let's exemplify the paradox with some examples.
Example A:
Labour force = 100 persons (Employed + Unemployed)
Employed = 95
Unemployed = 5
Unemployment rate = 5/100 = 5%
Example B;
Let's say 1 person cannot find a job in 6 months after actively looking for a job and he is considered to be out of the labour force. Therefore, the following will change.
Labour force = 99 (1 is out of the labour force)
Employed = 95 (remain constant)
Unemployed = 4 (1 is out of the unemployed because he is out of the labour force)
Unemployment rate = 4/99 = 4%
As you can see, the number of employed persons is the same (95) in both examples but the unemployment rate has improved from 5% to 4%. This happens without any improvement in the economic growth and the government can claim credit for lowering the unemployment rate by doing nothing.
Therefore, when you read any unemployment rate figure, please remember to look at the details and not just the headline number which can be very misleading.
The paradox arises from the definition of being unemployed. An unemployed person is considered unemployed if he is actively looking for a job but cannot get a job within 6 months. Thereafter, he is no longer considered unemployed because he will be categorized as out of the labour force as his interest in finding a job has disappeared after 6 months.
The labour force consists of employed and unemployed persons (Employed + Unemployed).
The calculation of the unemployment rate:
Unemployment rate = No. of unemployed / labour force
Let's exemplify the paradox with some examples.
Example A:
Labour force = 100 persons (Employed + Unemployed)
Employed = 95
Unemployed = 5
Unemployment rate = 5/100 = 5%
Example B;
Let's say 1 person cannot find a job in 6 months after actively looking for a job and he is considered to be out of the labour force. Therefore, the following will change.
Labour force = 99 (1 is out of the labour force)
Employed = 95 (remain constant)
Unemployed = 4 (1 is out of the unemployed because he is out of the labour force)
Unemployment rate = 4/99 = 4%
As you can see, the number of employed persons is the same (95) in both examples but the unemployment rate has improved from 5% to 4%. This happens without any improvement in the economic growth and the government can claim credit for lowering the unemployment rate by doing nothing.
Therefore, when you read any unemployment rate figure, please remember to look at the details and not just the headline number which can be very misleading.
Monday, August 7, 2017
OMG! Thailand is seriously considering the development of Kra Canal and the Thais are very supportive of this project.
https://asia.nikkei.com/Politics-Economy/Economy/Influential-Thais-in-push-for-Kra-Canal-project?page=1
https://asia.nikkei.com/Politics-Economy/Economy/Influential-Thais-in-push-for-Kra-Canal-project?page=2
The Thais are supportive of the development of Kra Canal nowadays because of the great benefits it will bring to Thailand. This Kra Canal project will have great multiplier effects which will generate a lot of business and job opportunities. It is also easier to get funding for this huge project after the establishment of AIIB and China is extremely interested in this project. Moreover, China has both the funds and the technologies to complete this project for Thailand.
Singapore will be finished once Kra Canal is developed.
https://asia.nikkei.com/Politics-Economy/Economy/Influential-Thais-in-push-for-Kra-Canal-project?page=2
The Thais are supportive of the development of Kra Canal nowadays because of the great benefits it will bring to Thailand. This Kra Canal project will have great multiplier effects which will generate a lot of business and job opportunities. It is also easier to get funding for this huge project after the establishment of AIIB and China is extremely interested in this project. Moreover, China has both the funds and the technologies to complete this project for Thailand.
Singapore will be finished once Kra Canal is developed.
Is the US professor, Huang Jing, pro-china or anti-china?
Just look at the videos below to form your own opinion.
Huang Jing's speech on China Media.
His speech in China seemed to be in favour of China. This made sense because he would be arrested if he made anti-china remarks on China's state TV media.
However, he made a speech against China when he's not in China.
Huang Jing's speech on China Media.
However, he made a speech against China when he's not in China.
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