How will QE tapering affect the market?
QE tapering is reducing its bond purchases or rollovers (reinvestment of its bond proceeds upon maturing) on a monthly basis.
As bond price and yield are inversely related and demand affects the bond price, the yield will stay low when the bond price is high. When there is lesser demand for the bond, the bond price will fall and the yield will go up. This is almost the same as hiking interest rate without literally hiking rate.
Hiking rate literally will affect currency movement and short term rate but QE tapering will only affect long term rate and is more neutral for the currency and stock market.
On the whole, the interest rate will still go up albeit slowly.
Thursday, July 27, 2017
Noble Group plunges heavily today after profit warning and asset sales.
https://sg-stock.blogspot.sg/2017/07/whats-left-for-noble-group-after.html
https://sg-stock.blogspot.sg/2017/07/noble-group-update.html
We did warn about Noble Group on a few occasions. It is not surprising that its P&L won't look good because it had sold off its golden goose.
Don't think that a company can be saved whenever a white knight appears. Sometimes, the white knight is also ignorant about the company and the industry. The white knight is financially strong enough to pull the plug but an ordinary retail investor can wipe out his life saving.
https://sg-stock.blogspot.sg/2017/07/noble-group-update.html
We did warn about Noble Group on a few occasions. It is not surprising that its P&L won't look good because it had sold off its golden goose.
Don't think that a company can be saved whenever a white knight appears. Sometimes, the white knight is also ignorant about the company and the industry. The white knight is financially strong enough to pull the plug but an ordinary retail investor can wipe out his life saving.
China has taken over a Sri Lanka port.
http://en.people.cn/n3/2017/0726/c90000-9246810.html
China has been buying up ports over the world and also set up a port alliance for its BRI (Belt Road Initiative). This will greatly reduce Singapore strategic importance that the USA values because the USA can contain China shipments by sealing the Strait of Malacca from Singapore.
China has been buying up ports over the world and also set up a port alliance for its BRI (Belt Road Initiative). This will greatly reduce Singapore strategic importance that the USA values because the USA can contain China shipments by sealing the Strait of Malacca from Singapore.
Wednesday, July 26, 2017
Stockbank blog has just received a top 75 Singapore investment blog award.
We've been informed by Feedspot that we've been awarded a top 75 Singapore investment blog award.
We will strive to continue to provide articles that are of interest to our readers.
Our top 3 readers come from Singapore, USA and Russia.
Yes, Russians like to read our blog and we don't know why. We are surprised that Malaysians are not in our top 5.
Nonetheless, we are happy to receive our first award. Thank you for your support.
What's left for Noble Group after selling income generating businesses?
https://sg.finance.yahoo.com/news/noble-group-said-seek-buyers-085506625.html
This is really getting worrisome as Noble sells off its income generating businesses. Noble will be left with negative cashflow assets that nobody wants.
Sigh!
This is really getting worrisome as Noble sells off its income generating businesses. Noble will be left with negative cashflow assets that nobody wants.
Sigh!
Flooding in China.
Quantum communication can be operational 24 hours soon.
http://en.people.cn/n3/2017/0726/c202936-9246537.html
Way to go, China!
China is really becoming a high technological country now with excellent achievement in quantum technology.
Way to go, China!
China is really becoming a high technological country now with excellent achievement in quantum technology.
India fired at Pakistan again!
http://www.kashmirvision.in/news/pakistan-summons-indian-envoy-over-border-tensions
India is stirring troubles for its neighbour again. The China-India border skirmish is not settled yet and India is attacking Pakistan again.
Sigh! This India is such a bully and must be taught a lesson!
Tuesday, July 25, 2017
AFP news agency is still recalcitrant about correcting its false reporting.
http://www.channelnewsasia.com/news/world/china-urges-asean-to-reject-outside-interference-9062252
The whole world already knew that PCA was not a true international court and it was not part of the UN or backed by UN. However, AFP news agency still insists that PCA is UN-backed till today even when UN has declared that PCA is not related to UN.
We had some postings about PCA before.
http://sg-stock.blogspot.sg/2016/07/icj-has-declared-that-it-is-not.html
http://sg-stock.blogspot.sg/2016/07/un-has-publicly-declared-that-pca-is.html
http://sg-stock.blogspot.sg/2016/07/the-truth-about-south-china-sea-ruling.html
The whole world already knew that PCA was not a true international court and it was not part of the UN or backed by UN. However, AFP news agency still insists that PCA is UN-backed till today even when UN has declared that PCA is not related to UN.
We had some postings about PCA before.
http://sg-stock.blogspot.sg/2016/07/icj-has-declared-that-it-is-not.html
http://sg-stock.blogspot.sg/2016/07/un-has-publicly-declared-that-pca-is.html
http://sg-stock.blogspot.sg/2016/07/the-truth-about-south-china-sea-ruling.html
China has given India its harshest warning!
http://www.scmp.com/news/china/diplomacy-defence/article/2103864/chinas-defence-spokesman-warns-india-not-take-any
China had recently conducted live firing exercise for 11 hours on 5000m higher Tibet plateau in preparation for a war with India. This live firing exercise was to demonstrate that its military equipment and weapons could operate well in a high altitude environment and its military personnel could function properly without any sickness.
China has carefully selected a certain race to be stationed in a high altitude area. This group of people possess a special DNA that can function very well in a low oxygen environment. You will know what I'm saying when you've been to a high altitude area.
A war break out between China and India is highly probable if India doesn't withdraw its troops from China's border soon. China is losing its impatience because President Xi must resolve this before the 19th party congress.
China had recently conducted live firing exercise for 11 hours on 5000m higher Tibet plateau in preparation for a war with India. This live firing exercise was to demonstrate that its military equipment and weapons could operate well in a high altitude environment and its military personnel could function properly without any sickness.
China has carefully selected a certain race to be stationed in a high altitude area. This group of people possess a special DNA that can function very well in a low oxygen environment. You will know what I'm saying when you've been to a high altitude area.
A war break out between China and India is highly probable if India doesn't withdraw its troops from China's border soon. China is losing its impatience because President Xi must resolve this before the 19th party congress.
Australian foreign minister showed her ignorance of China-India border skirmish.
http://en.people.cn/n3/2017/0724/c90883-9245817.html
Quote:
Australian Foreign Minister Julie Bishop reportedly said, "My understanding is that this is a long-term dispute ... Australia's position is that territorial disputes should be resolved peacefully between the claimant countries."
"It is right to say that territorial disputes should be resolved peacefully, but I must point out that such a saying is not applied to the situation in Doklam because there has been no territorial dispute at all at the site where the incident takes place," spokesperson Lu Kang said.
End Quote.
When you don't understand something, it's best to keep your mouth shut! Maybe Australia is trying to embark on a smearing campaign too. However, India had already acknowledged that it intruded China's border territory to stop the infrastructure development.
Australia has proven itself to be a less trustworthy country again. Why?
Australia supported PCA ruling against China but openly ignored PCA against itself.
Monday, July 24, 2017
India must do a reality check or else it will suffer tremendously.
https://sg.news.yahoo.com/china-warns-india-not-harbour-illusions-border-stand-042140857.html
It is without a doubt that the border skirmish is in favour of China because India encroached on China's territory.
UN security council resolution states that any country can embark on military action against any incursion. Therefore, China has been very restrained in dealing with India by not invoking military action against this incursion.
India was badly defeated in 1962 for invading China's border when both countries' powers were not significantly apart. However, China's economic size and military power have progressed tremendously and the 2 countries are widely apart now. India's land size is only 1/3 of China and its economy is about 20% of China's economy.
Therefore, India will suffer a humiliating defeat which is worse than 1962 when both countries go to war and both countries will not use any nuclear weapon for this war.
It is without a doubt that the border skirmish is in favour of China because India encroached on China's territory.
UN security council resolution states that any country can embark on military action against any incursion. Therefore, China has been very restrained in dealing with India by not invoking military action against this incursion.
India was badly defeated in 1962 for invading China's border when both countries' powers were not significantly apart. However, China's economic size and military power have progressed tremendously and the 2 countries are widely apart now. India's land size is only 1/3 of China and its economy is about 20% of China's economy.
Therefore, India will suffer a humiliating defeat which is worse than 1962 when both countries go to war and both countries will not use any nuclear weapon for this war.
Smearing campaign against China by BBC.
http://www.bbc.com/news/world-asia-40701121
BBC is following CNN in fake news productions by stating that Vietnam stopped its oil drilling after China's threat.
Let's look at BBC recent reporting.
BBC reported false news about China-India border skirmishes when it stated that China was the first to remind India that China was not the China of 1962.
http://www.bbc.com/news/world-asia-40478813
http://www.bbc.com/news/world-asia-india-40653053
The true fact was India was the first to remind China that India was no longer the 1962 India. Subsequently, China retorted by stating that China was also not the 1962 China. BBC omitted the timelines of the statements to create a false impression in its reporting.
Let's look at the timeline reporting below.
http://timesofindia.indiatimes.com/india/not-the-1962-india-anymore-jaitleys-response-to-china/articleshow/59387725.cms
http://www.huffingtonpost.in/2017/06/30/india-of-2017-is-different-from-the-india-of-1962-arun-jaitley_a_23009944/
India Arun was the first to state that India was no longer the 1962 India on 30 June 2017.
http://www.ndtv.com/india-news/china-retaliates-to-arun-jaitley-saying-this-is-not-the-india-of-1962-war-1719900
Then, China retorted on 3 July 2017 by stating China was also not the 1962 China.
However, BBC chose to omit the timelines in its prejudiced reporting and accused China of threatening India. Shame on you, BBC!
BBC is following CNN in fake news productions by stating that Vietnam stopped its oil drilling after China's threat.
Let's look at BBC recent reporting.
BBC reported false news about China-India border skirmishes when it stated that China was the first to remind India that China was not the China of 1962.
http://www.bbc.com/news/world-asia-40478813
http://www.bbc.com/news/world-asia-india-40653053
The true fact was India was the first to remind China that India was no longer the 1962 India. Subsequently, China retorted by stating that China was also not the 1962 China. BBC omitted the timelines of the statements to create a false impression in its reporting.
Let's look at the timeline reporting below.
http://timesofindia.indiatimes.com/india/not-the-1962-india-anymore-jaitleys-response-to-china/articleshow/59387725.cms
http://www.huffingtonpost.in/2017/06/30/india-of-2017-is-different-from-the-india-of-1962-arun-jaitley_a_23009944/
India Arun was the first to state that India was no longer the 1962 India on 30 June 2017.
http://www.ndtv.com/india-news/china-retaliates-to-arun-jaitley-saying-this-is-not-the-india-of-1962-war-1719900
Then, China retorted on 3 July 2017 by stating China was also not the 1962 China.
However, BBC chose to omit the timelines in its prejudiced reporting and accused China of threatening India. Shame on you, BBC!
Sunday, July 23, 2017
US Navy was at fault for the container collision.
http://www.independent.co.uk/news/world/americas/uss-fitzgerald-crash-7-american-sailors-killed-navys-own-fault-philippines-cargo-vessel-a7852681.html
We had already stated clearly that the US destroyer was at fault because it didn't observe international maritime laws. CNN had just released its investigation outcome.
http://sg-stock.blogspot.sg/2017/06/usa-destroyer-collision-was-due-to.html
We had already stated clearly that the US destroyer was at fault because it didn't observe international maritime laws. CNN had just released its investigation outcome.
http://sg-stock.blogspot.sg/2017/06/usa-destroyer-collision-was-due-to.html
Saturday, July 22, 2017
Baltic dry index - 977
Today, Friday, July 21 2017, the Baltic Dry Index climbed by 13 points, reaching 977 points.
Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.
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Related stocks: Sembcorp Marine, Cosco & Pan Ocean.
US rig count - 950
HOUSTON (AP) — The number of rigs exploring for oil and natural gas in the U.S. decreased by two this week to 950.
A year ago, just 462 rigs were active.
Houston oilfield services company Baker Hughes said Friday that 764 rigs sought oil and 186 explored for natural gas this week.
Among major oil- and gas-producing states, Louisiana gained four rigs, California increased by two and North Dakota and Utah each gained one.
Oklahoma and Texas each declined by three, New Mexico fell by two and Alaska decreased by one.
Arkansas, Colorado, Ohio, Pennsylvania, West Virginia and Wyoming were all unchanged.
The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May of 2016 at 404.
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Related stocks: Keppel Corp, Sembcorp Marine & Cosco
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