Canada central bank maintains key lending rate at 1%
POSTED: 17 Jul 2013 10:57 PM
Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
OTTAWA: Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
The Bank of Canada pointed to a struggling European economy and a slowdown in China, offsetting recent gains in Japan and the United States
"Global economic growth remains modest," the bank said in a statement.
It also hinted it would maintain for the foreseeable future its near historic low rate, which has been in place since September 2010.
"As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate," it said.
The bank noted that US economy is growing at a "moderate pace," with continued strengthening in private sector demand partly offset by the impact of fiscal consolidation.
Meanwhile Japan's recent stimulus has led to "a rapid recovery in economic growth," the bank said.
However, Europe's economy "remains weak" and economic growth in China and other emerging nations "has slowed, exerting downward pressure on global commodity prices."
"As a consequence, the bank has downgraded slightly its global growth forecast," it said, adding that the global economy is still expected to pick up in 2014 and 2015.
In Canada, growth is expected to be "choppy in the near term, owing to unusual temporary factors," the bank said.
Despite ongoing competitiveness challenges, Canadian exports are projected to "gather momentum," which in turn will boost confidence and lead to more business investment, it said.
The Canadian economy will also be supported by continued growth in consumer spending, while a bit less is expected to be spent on new homes.
- AFP/fa
- wong chee tat :)
Showing posts with label global financial developments. Show all posts
Showing posts with label global financial developments. Show all posts
Thursday, July 18, 2013
Monday, October 18, 2010
IMF chief warns global recovery 'in peril'
IMF chief warns global recovery 'in peril'
SHANGHAI (AFP) - – International Monetary Fund chief Dominique Strauss-Kahn on Monday warned that the global recovery would be "in peril" if the world's major economies did not continue to work together.
"The spirit of cooperation must be maintained. Without that, the recovery is in peril," Strauss-Kahn said in closing remarks to a meeting of IMF and central bank officials from around the world, according to a copy of his speech.
"Today, there is a risk that the single chorus that tamed the financial crisis will dissolve into a cacophony of discordant voices as countries increasingly go it alone. This will surely make everybody worse off."
- wong chee tat :)
Monday, November 2, 2009
Companies brace themselves for staff attrition as economy improves
Companies brace themselves for staff attrition as economy improves
Channel NewsAsia
SINGAPORE: Companies are bracing themselves for staff attrition as the economy improves. A poll by global management consultancy, Hay Group, said they are doing so by investing to retain high performing employees.
Dr Stephen Choo, regional director of Hay Group Insight, said employees in Singapore feel that they have stretched themselves to the limit to help their companies in the downturn, and a talent exodus might happen if nothing is done to reward and recognize the sacrifices made by employees.
According to Dr Choo, companies need to think of more ways to engage their employees.
"Talent are certainly very motivated to remain with the company if there are lots of development opportunities — that the company could actually work with them in terms of enhancing their skills and talent," said Dr Choo.
"Also, training is very important. Certainly leadership is still very important because lots of talent are motivated to stay with the company if there is a good role model they can look up to," he added.
Other motivating factors include offering employees more resources to work with, creating an environment that promotes greater teamwork, and also giving them more empowerment and authority.
Dr Choo said that companies polled are planning on average to give a salary increase of 3 per cent in 2010, as compared to 2.3 per cent this year.
The sectors doling out the highest salary increases will be the Oil & Gas, Chemicals and Insurance sectors.
The poll also showed that the percentage of companies cutting or freezing pay has dropped from 58 per cent in March to 18 per cent in October.
According to the Hay Group’s survey, variable bonuses for this year will remain modest at 1.8 months, and are forecast to be marginally lower at 1.5 months in 2010. The lower bonus predicted in 2010 is due to the unclear economic outlook for the next three to six months, explained Dr Choo.
He said: "As a whole, most industries are quite conservative about their forecast because there is no clear indication at this point in time that the economy is certainly moving up north.
"What we can see so far is that there are conflicting stories about some industries seeing an upturn, but at the same time there are also companies which are laying off staff as well."
— CNA/sc
- wong chee tat :)
Channel NewsAsia
SINGAPORE: Companies are bracing themselves for staff attrition as the economy improves. A poll by global management consultancy, Hay Group, said they are doing so by investing to retain high performing employees.
Dr Stephen Choo, regional director of Hay Group Insight, said employees in Singapore feel that they have stretched themselves to the limit to help their companies in the downturn, and a talent exodus might happen if nothing is done to reward and recognize the sacrifices made by employees.
According to Dr Choo, companies need to think of more ways to engage their employees.
"Talent are certainly very motivated to remain with the company if there are lots of development opportunities — that the company could actually work with them in terms of enhancing their skills and talent," said Dr Choo.
"Also, training is very important. Certainly leadership is still very important because lots of talent are motivated to stay with the company if there is a good role model they can look up to," he added.
Other motivating factors include offering employees more resources to work with, creating an environment that promotes greater teamwork, and also giving them more empowerment and authority.
Dr Choo said that companies polled are planning on average to give a salary increase of 3 per cent in 2010, as compared to 2.3 per cent this year.
The sectors doling out the highest salary increases will be the Oil & Gas, Chemicals and Insurance sectors.
The poll also showed that the percentage of companies cutting or freezing pay has dropped from 58 per cent in March to 18 per cent in October.
According to the Hay Group’s survey, variable bonuses for this year will remain modest at 1.8 months, and are forecast to be marginally lower at 1.5 months in 2010. The lower bonus predicted in 2010 is due to the unclear economic outlook for the next three to six months, explained Dr Choo.
He said: "As a whole, most industries are quite conservative about their forecast because there is no clear indication at this point in time that the economy is certainly moving up north.
"What we can see so far is that there are conflicting stories about some industries seeing an upturn, but at the same time there are also companies which are laying off staff as well."
— CNA/sc
- wong chee tat :)
Monday, October 12, 2009
MAS keeps policy stance for Singdollar
MAS keeps policy stance for Singdollar
Posted: 12 October 2009 0828 hrs
SINGAPORE: The Monetary Authority of Singapore (MAS) said on Monday it will maintain its current policy of zero appreciation of the Singapore dollar.
It said it will continue to be vigilant over developments in the external environment, including the medium-term risk of stronger global inflationary pressures.
Looking ahead, the central bank said the Singapore economy is not expected to sustain the strong pace of expansion seen in second and third quarter of this year.
While prospects for the external economies have improved, final demand in Singapore's key export markets, including IT products, has yet to recover decisively.
Significant challenges remain in the transition to private sector-driven growth as governments prepare to exit from their expansionary policies.
Household spending, particularly in the US, continues to be constrained by weak labour market, sluggish income growth and lower housing wealth. Businesses also remain cautious in their investment decisions.
Against this backdrop, the Singapore economy is likely to settle at a more gradual pace of expansion.
MAS said gross domestic product (GDP) growth in 2010 is expected to be slower than in previous post-recession periods. Consumer price index (CPI) inflation is likely to be around 0 per cent in 2009, before rising to 1 to 2 per cent in 2010.
- CNA/so
Posted: 12 October 2009 0828 hrs
SINGAPORE: The Monetary Authority of Singapore (MAS) said on Monday it will maintain its current policy of zero appreciation of the Singapore dollar.
It said it will continue to be vigilant over developments in the external environment, including the medium-term risk of stronger global inflationary pressures.
Looking ahead, the central bank said the Singapore economy is not expected to sustain the strong pace of expansion seen in second and third quarter of this year.
While prospects for the external economies have improved, final demand in Singapore's key export markets, including IT products, has yet to recover decisively.
Significant challenges remain in the transition to private sector-driven growth as governments prepare to exit from their expansionary policies.
Household spending, particularly in the US, continues to be constrained by weak labour market, sluggish income growth and lower housing wealth. Businesses also remain cautious in their investment decisions.
Against this backdrop, the Singapore economy is likely to settle at a more gradual pace of expansion.
MAS said gross domestic product (GDP) growth in 2010 is expected to be slower than in previous post-recession periods. Consumer price index (CPI) inflation is likely to be around 0 per cent in 2009, before rising to 1 to 2 per cent in 2010.
- CNA/so
Tuesday, July 14, 2009
Strong biomedical sector pulls S’pore out of recession
Strong biomedical sector pulls S’pore out of recession
Channel NewsAsia
SINGAPORE: Singapore is out of technical recession as advance estimates show that its economy grew by 20.4 percent in the second quarter, snapping four straight quarterly contractions.
But compared with the same period in the previous year, second—quarter GDP shrank 3.7 percent.
The Ministry of Trade and Industry has also revised first—quarter GDP to a contraction of 9.6 percent on—year instead of the minus 10.1 percent announced in May.
A spike in electronics and biomedical output lifted Singapore’s economy in the second quarter. The key manufacturing sector is estimated to have dipped by 1.5 percent compared to a 24.3 percent contraction in the first quarter.
Despite signs of a recovery, the government cautioned that the outlook for the rest of the year will be subdued. In fact, some economists warned that third—quarter numbers may not be as rosy if the volatile biomedical sector under—performs.
Alvin Liew, an economist at Standard Chartered Bank, said: "Another point on biomedical output; if it remains strong in the second half, that could be due to the fact that the flu pandemic which we are facing have gotten worse, which means the requirements for medical output may be higher, but that would mean tourism and other related sectors could be badly hit. So the net—off effect is fairly hard to say."
Observers said the uptick in the electronics sector — due to inventory restocking — may be unsustainable if global demand does not improve. This is especially since three quarters of Singapore’s GDP growth are driven by external demand.
Vishnu Varathan, a regional economist at Forecast, said: "We have not seen any compelling signs of a demand—led recovery just yet. We are not convinced US consumers will consume at the same rate they used to, pre—crisis. Yes, there is improvement in US savings rate, property prices have stopped dropping in the US or stopped plunging off the cliffs....these are positive at the margins for externally—focused country like Singapore, but to bet on a V—shaped rebound will be to ignore the downside risks out there."
Singapore’s services sector remained weak, shrinking 5.1 percent in the second quarter. Hotels and restaurants sector was weighed down by the slump in tourist arrivals, while the financial services sector contracted less severely on the back of improved market sentiment.
On the employment front, economists said the positive data for the second quarter may not necessarily translate to fewer job cuts, especially in more vulnerable sectors. They said companies are also cautious about recruitment as many of them are still running at excess capacity.
Singapore has raised its full—year economic forecast to a 4 to 6 per cent contraction to reflect the improved Q2 performance. In April, the government had projected the economy to shrink by 6 to 9 per cent.
— CNA/ir
- wong chee tat :)
Channel NewsAsia
SINGAPORE: Singapore is out of technical recession as advance estimates show that its economy grew by 20.4 percent in the second quarter, snapping four straight quarterly contractions.
But compared with the same period in the previous year, second—quarter GDP shrank 3.7 percent.
The Ministry of Trade and Industry has also revised first—quarter GDP to a contraction of 9.6 percent on—year instead of the minus 10.1 percent announced in May.
A spike in electronics and biomedical output lifted Singapore’s economy in the second quarter. The key manufacturing sector is estimated to have dipped by 1.5 percent compared to a 24.3 percent contraction in the first quarter.
Despite signs of a recovery, the government cautioned that the outlook for the rest of the year will be subdued. In fact, some economists warned that third—quarter numbers may not be as rosy if the volatile biomedical sector under—performs.
Alvin Liew, an economist at Standard Chartered Bank, said: "Another point on biomedical output; if it remains strong in the second half, that could be due to the fact that the flu pandemic which we are facing have gotten worse, which means the requirements for medical output may be higher, but that would mean tourism and other related sectors could be badly hit. So the net—off effect is fairly hard to say."
Observers said the uptick in the electronics sector — due to inventory restocking — may be unsustainable if global demand does not improve. This is especially since three quarters of Singapore’s GDP growth are driven by external demand.
Vishnu Varathan, a regional economist at Forecast, said: "We have not seen any compelling signs of a demand—led recovery just yet. We are not convinced US consumers will consume at the same rate they used to, pre—crisis. Yes, there is improvement in US savings rate, property prices have stopped dropping in the US or stopped plunging off the cliffs....these are positive at the margins for externally—focused country like Singapore, but to bet on a V—shaped rebound will be to ignore the downside risks out there."
Singapore’s services sector remained weak, shrinking 5.1 percent in the second quarter. Hotels and restaurants sector was weighed down by the slump in tourist arrivals, while the financial services sector contracted less severely on the back of improved market sentiment.
On the employment front, economists said the positive data for the second quarter may not necessarily translate to fewer job cuts, especially in more vulnerable sectors. They said companies are also cautious about recruitment as many of them are still running at excess capacity.
Singapore has raised its full—year economic forecast to a 4 to 6 per cent contraction to reflect the improved Q2 performance. In April, the government had projected the economy to shrink by 6 to 9 per cent.
— CNA/ir
- wong chee tat :)
Tuesday, March 10, 2009
Job losses this year expected to exceed 29,000, says SNEF
Job losses this year expected to exceed 29,000, says SNEF
Channel NewsAsia
Channel NewsAsia
SINGAPORE: This year’s retrenchment figures are likely to bust the record of 29,000 jobs lost in 1998 during the Asian financial crisis, according to Singapore National Employers Federation’s (SNEF’s) president, Stephen Lee.
Mr Lee was commenting on a survey finding by HR firm Manpower Staffing Services where 636 employers across seven industry sectors were polled.
The survey found that 50 per cent of employers anticipate a cut in headcount, 29 per cent expect no change, while only seven per cent expect to increase staff strength in the second quarter.
On an industry basis, the survey found that the bleakest prospects are in the transport and utilities sectors, followed by public administration and education.
Hiring prospects are also weak in the trade and retail and services sectors, although quarter—over—quarter, there has been a slight improvement in the outlook for the finance, insurance and real estate sectors.
One emerging trend is more contract hiring, which gives more flexibility to employers.
SNEF has seen such numbers growing from 172,000 in 2006 to 190,000 last year and expects it to strengthen further.
SNEF says the silver lining here are the few sectors that are still hiring like the integrated resorts and start—ups, and encouraging take—up rates for training.
13,000 workers from 30 companies are taking up the national training programme SPUR.
But the job situation is likely to get worse before it gets better.
Mr Lee said: "NTUC’s secretary—general Lim Swee Say had already said most likely in the first quarter, retrenchment figures will hit 10,000. So if we work on that sort of figure, then I anticipate that in the second quarter, it (retrenchment figures) will continue to escalate. I don’t think we have seen the worst yet. Hopefully it will peak out in the second quarter of this year."
— CNA/yt
- wong chee tat :)
Channel NewsAsia
Channel NewsAsia
SINGAPORE: This year’s retrenchment figures are likely to bust the record of 29,000 jobs lost in 1998 during the Asian financial crisis, according to Singapore National Employers Federation’s (SNEF’s) president, Stephen Lee.
Mr Lee was commenting on a survey finding by HR firm Manpower Staffing Services where 636 employers across seven industry sectors were polled.
The survey found that 50 per cent of employers anticipate a cut in headcount, 29 per cent expect no change, while only seven per cent expect to increase staff strength in the second quarter.
On an industry basis, the survey found that the bleakest prospects are in the transport and utilities sectors, followed by public administration and education.
Hiring prospects are also weak in the trade and retail and services sectors, although quarter—over—quarter, there has been a slight improvement in the outlook for the finance, insurance and real estate sectors.
One emerging trend is more contract hiring, which gives more flexibility to employers.
SNEF has seen such numbers growing from 172,000 in 2006 to 190,000 last year and expects it to strengthen further.
SNEF says the silver lining here are the few sectors that are still hiring like the integrated resorts and start—ups, and encouraging take—up rates for training.
13,000 workers from 30 companies are taking up the national training programme SPUR.
But the job situation is likely to get worse before it gets better.
Mr Lee said: "NTUC’s secretary—general Lim Swee Say had already said most likely in the first quarter, retrenchment figures will hit 10,000. So if we work on that sort of figure, then I anticipate that in the second quarter, it (retrenchment figures) will continue to escalate. I don’t think we have seen the worst yet. Hopefully it will peak out in the second quarter of this year."
— CNA/yt
- wong chee tat :)
Wednesday, December 31, 2008
Boom to gloom for fresh grads
Boom to gloom for fresh grads
Economic woes might leave youth more time for simpler joys in life
By Fiona Chan
FOR fresh graduates, 2008 was supposed to be a year full of promise.
Unemployment in Singapore had dipped to an all-time low last year and salaries were on the rise as the economy boomed.
There were small worrying signs that the sub-prime mortgage crisis in the United States was more insidious than it seemed, but economies around the world were still growing strongly in the first half of the year.
Then investment bank Lehman Brothers collapsed in September, and everything fell apart.
Like falling dominoes, banks and companies worldwide found themselves reeling from the effects of the mortgage crisis, which turned into a credit crunch and then a recession that skirted the edges of depression. Forced to cut costs to survive, firms started freezing new hires, laying off workers and slashing wages.
Now, young people are finding themselves stuck with pay cuts and lower bonuses - that is, if they are lucky enough to be employed at all.
A friend who had worked at Lehman Brothers in New York for two years suddenly found himself out of a job in September. 'L is chill and relaxed,' his Facebook status read drily. 'No work tomorrow onwards.'
Another friend has been unable to find a job since he graduated from university in June, despite sending out dozens of applications and going for more than a few interviews.
A third friend planned to quit a career he hated this year and find something else more to his liking. But as job openings abruptly dried up, he resigned himself to staying on at the same job for at least another year.
In the past, a dearth of jobs prompted people to take a break and head back to school. But this time, paying for graduate school is becoming a less viable option as the world anticipates the worst recession in modern times next year, said The New York Times in a recent article.
Things on the economic front are not likely to improve for much of 2009.
The Singapore economy is officially predicted to grow between -1 per cent and 2 per cent next year, but many economists have even bleaker forecasts.
Still, as with every dark cloud, there is a silver lining.
The cost of living is expected to be lower next year, with inflation tipped at less than 1 per cent - from an alarming 6 per cent this year.
Food prices are easing and oil prices are plunging, making it cheaper to pump petrol, take public transport, buy air tickets and use electricity, among other things.
With shoppers staying at home and saving their money, retailers are also likely to start giving bigger discounts to draw customers back.
And as many sanguine commentators have noted, there is also a philosophical bright side to the downturn.
A recession, coming after years of excess, can be a time for reflection and re- evaluation.
Instead of working 60-hour weeks for a bigger pay packet that will not materialise next year, a good resolution for the New Year could be to simply spend more time with loved ones and be content with what we have.
fiochan@sph.com.sg
2008 is going out soon and 2009 will come, what do you think of the economy? Will it be better or worse?
What do you think?
-wong chee tat :)
Economic woes might leave youth more time for simpler joys in life
By Fiona Chan
FOR fresh graduates, 2008 was supposed to be a year full of promise.
Unemployment in Singapore had dipped to an all-time low last year and salaries were on the rise as the economy boomed.
There were small worrying signs that the sub-prime mortgage crisis in the United States was more insidious than it seemed, but economies around the world were still growing strongly in the first half of the year.
Then investment bank Lehman Brothers collapsed in September, and everything fell apart.
Like falling dominoes, banks and companies worldwide found themselves reeling from the effects of the mortgage crisis, which turned into a credit crunch and then a recession that skirted the edges of depression. Forced to cut costs to survive, firms started freezing new hires, laying off workers and slashing wages.
Now, young people are finding themselves stuck with pay cuts and lower bonuses - that is, if they are lucky enough to be employed at all.
A friend who had worked at Lehman Brothers in New York for two years suddenly found himself out of a job in September. 'L is chill and relaxed,' his Facebook status read drily. 'No work tomorrow onwards.'
Another friend has been unable to find a job since he graduated from university in June, despite sending out dozens of applications and going for more than a few interviews.
A third friend planned to quit a career he hated this year and find something else more to his liking. But as job openings abruptly dried up, he resigned himself to staying on at the same job for at least another year.
In the past, a dearth of jobs prompted people to take a break and head back to school. But this time, paying for graduate school is becoming a less viable option as the world anticipates the worst recession in modern times next year, said The New York Times in a recent article.
Things on the economic front are not likely to improve for much of 2009.
The Singapore economy is officially predicted to grow between -1 per cent and 2 per cent next year, but many economists have even bleaker forecasts.
Still, as with every dark cloud, there is a silver lining.
The cost of living is expected to be lower next year, with inflation tipped at less than 1 per cent - from an alarming 6 per cent this year.
Food prices are easing and oil prices are plunging, making it cheaper to pump petrol, take public transport, buy air tickets and use electricity, among other things.
With shoppers staying at home and saving their money, retailers are also likely to start giving bigger discounts to draw customers back.
And as many sanguine commentators have noted, there is also a philosophical bright side to the downturn.
A recession, coming after years of excess, can be a time for reflection and re- evaluation.
Instead of working 60-hour weeks for a bigger pay packet that will not materialise next year, a good resolution for the New Year could be to simply spend more time with loved ones and be content with what we have.
fiochan@sph.com.sg
2008 is going out soon and 2009 will come, what do you think of the economy? Will it be better or worse?
What do you think?
-wong chee tat :)
Tuesday, December 9, 2008
S'poreans less confident of getting by without main source of income
S'poreans less confident of getting by without main source of income
By Dominique Loh, Channel NewsAsia Posted: 09 December 2008 1756 hrs
SINGAPORE: Singaporeans these days are less confident of surviving without their main source of income, according to a recent survey conducted by American International Assurance (AIA) Company.
The AIA survey showed that only 19 per cent of interviewees said they could get by for more than two years without a primary source of income – down from 27 per cent a year before.
The survey was conducted between June and July this year, so the results and findings did not take into account the recent episode of financial products linked to failed US investment bank Lehman Brothers.
It also did not factor in the global financial developments in the past few months.
The survey suggested that Singaporeans are now more aware that they cannot cope without an income. Due to inflation, a person's savings for future plans may only last for less than a year.
One Singaporean, who was asked if he has saved enough to get by without an income, said: "I wouldn't know if I have prepared enough as I go on. I don't know how long I'll live."
"Even if I get a big pay check, I don't go out and spend. I'm like a squirrel – I like to save my money, watch the number grow and not spend it," another added.
"I've taken away my cable TV, and I've started shifting to NTUC for grocery purchases. I'm going to sell my car. It's going to be tough times," another responded.
More than 1,200 people over 18 years old were surveyed.
-http://www.channelnewsasia.com/stories/singaporelocalnews/view/395161/1/.html
- wong chee tat :)
By Dominique Loh, Channel NewsAsia Posted: 09 December 2008 1756 hrs
SINGAPORE: Singaporeans these days are less confident of surviving without their main source of income, according to a recent survey conducted by American International Assurance (AIA) Company.
The AIA survey showed that only 19 per cent of interviewees said they could get by for more than two years without a primary source of income – down from 27 per cent a year before.
The survey was conducted between June and July this year, so the results and findings did not take into account the recent episode of financial products linked to failed US investment bank Lehman Brothers.
It also did not factor in the global financial developments in the past few months.
The survey suggested that Singaporeans are now more aware that they cannot cope without an income. Due to inflation, a person's savings for future plans may only last for less than a year.
One Singaporean, who was asked if he has saved enough to get by without an income, said: "I wouldn't know if I have prepared enough as I go on. I don't know how long I'll live."
"Even if I get a big pay check, I don't go out and spend. I'm like a squirrel – I like to save my money, watch the number grow and not spend it," another added.
"I've taken away my cable TV, and I've started shifting to NTUC for grocery purchases. I'm going to sell my car. It's going to be tough times," another responded.
More than 1,200 people over 18 years old were surveyed.
-http://www.channelnewsasia.com/stories/singaporelocalnews/view/395161/1/.html
- wong chee tat :)
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