Fed Officials Saw No Need for More Stimulus in June

Part of the excerpt from a July 14 (Bloomberg) article -- Federal Reserve officials saw no need to boost stimulus to the economy while trimming their forecasts for growth and noting that risks to the recovery had increased, minutes of their June meeting showed.

"The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside," minutes released today in Washington said. "The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place."

Slowing inflation, constrained household spending and contracting credit prompted Fed policy makers last month to restate a pledge to keep the benchmark lending rate at around zero for "an extended period," the Fed's statement showed.

The minutes indicated that U.S. central bankers were concerned about lingering high unemployment and risks that inflation could decelerate further. If the outlook worsened, the Federal Open Market Committee would need to consider whether additional stimulus was appropriate, the minutes said.

> reading between the lines, it gives credence that the interest rates will remain low for quite a while, which in turn will also mean that interest rates in Singapore will also remain at a historical low. In a seperate article, experts note that since Singapore conducts monetary policy by adjusting its exchage rates, therefore its likely the Sing-Dollar will appreciate in the coming quarters. This translates to a 'perfect-conditions' for assest prices to appreciate further as liquidy is good and money is cheap with foreign funds inflow expected to increase too.

Singapore’s GDP Expands at Record Pace in Resilience to Europe

Excerpt from July 14 (Bloomberg) -- Singapore's economy expanded at a 26 percent annual pace in the second quarter after a record surge the previous three months, spurring the nation's currency and adding to evidence of Asia's resilience to the European crisis.

Singapore's growth for the first quarter was revised to 45.9 percent, the fastest since records began in 1975, the trade ministry said today. Gross domestic product will rise between 13 percent and 15 percent in 2010, compared with an earlier forecast of as much as 9 percent, the ministry said.

A year after Singapore exited its worst recession since independence in 1965, tourists are arriving in record numbers, companies have increased hiring and vessels are leaving the city's ports carrying more cargo. The island's strengthening economy has added to an Asian rebound that prompted central banks to raise interest rates in recent weeks, even amid concern that Europe's fiscal woes will slow the global recovery.

"Singapore will be among the fastest-growing countries not just in Asia, but the world, this year," said Song Seng-Wun, an economist at CIMB Research Pte in Singapore. "Price pressures are already evident and we expect the central bank to be watching if inflation expectations are raised because of these numbers."

Singapore's growth has already prompted the central bank to allow the currency to strengthen to temper inflationary pressures. The Singapore dollar is used instead of interest rates to conduct monetary policy.


> That said, with our interest rates taking a cue from the US, it should remain low for 'an extended period' which should in turn spur more borrowings and more foreign funds inflow. That in turn will support asset prices like equities & real estate.

> My train of thoughts might be simple, if you have differing thoughts, I welcome you to leave some comments, cheers!

Turning of the tide?

Its starting to seem to me that the optimism tide is slowly returning. Going by the amount of 'talking-up' by the analysts/experts.

Just some sample of the recent headlines:

Today: US, Asia shine again - 28 June 2010

Today: Sharp drop in private home prices unlikely in H2 - 28 June 2010

Straits Times: High-end property prices could appreciate: UBS - 25 June 2010

Straits Times: Fitch rates outlook for S'pore banks as 'stable - 25 June 2010

Straits Times: Prime resale condo prices hit new high - 25 June 2010

Business Times: Asia-Pac millionaires' millions surpass Europe's - 24 June 2010

Straits Times: Investment gains creating many more millionaires - 24 June 2010

Business Times: No risks seen for banks from real estate exposure. This is because prices are rising in tandem with GDP growth: Moody's - 24 June 2010

No wonder MM Lee don't think a property bubble is forming

Recent Singapore economic data like manufacturing jumping 58.6% yoy and Q1 GDP of 15.5% and a projection of 16 to 20% for Q2. And a revision of GDP for this year to between 7 and 9% points to a robust growth.

In addition, consumer confidence is the highest in two years and incomes stronger than expected in recent surveys in the US all points to a relatively robust recovery.

But wait, all those are past data, all in the rear view mirror. Looking forward, the winding down of economic stimulus, attacks on governments with weakened debt situation, asset bubbles fueled by cheap money and black swan events are putting the lid on investor

Up or Down?

Increasingly there is more and more voices joining in the chorus of prediction for the property market.

Lately, analysts from Moody's say that charting the property price and GDP shows that prices are in line with growth, yet some people thinks that prices have run up too fast (recall the record setting price for the Sentosa Cove bungalow)

Even bankers have divergent views, some saying asset bubbles are forming across Asia while others say their loan book is strong.

Personally, I'm a chart person, what was previously at a peak can go higher and watch out for parabolic rise just like the '97 peak. Recently prices have plateaued, building a base for the next leg up? Correction? Love to hear your thoughts.

Singapore tops London

"New York is still the top spot for banking and finance, with London losing ground to Asia's financial capitals, according to the Bloomberg Global Poll. Asked what city will be best 2 years from now, investors, bankers and analysts put New York ahead by a large margin (29%) - with Singapore in second place (17%) and London a close third (16%).*"

Give this unsurprising survey, its safe to say Singapore is still have room to increase in attractiveness as its safer, more well-organized and definitely more affordable than the rest of the major financial centers.

*Survey conducted October 2009 on a sample size of 1,452 Bloomberg customers with a margin of error of ±2.6%.

Below is a list of 'Best Bites in Bukit Timah' as featured in The Sunday Times June 13, 2010

My Little Spanish Place
619 Bukit Timah Road

This cosy Spanish eatery can seat up to 50 people and serves tapas and Spanish delights such as paella, soups, salads and fideuas. Dishes include chickpeas served with chorizo and a cold meat selection of jamon, chorizo, lomo and salchichon.

Le Bon Marche
383 Bukit Timah Road, Alocassia Apartments #01-01

A bristo and gourmet market place which stocks gourmet grocery items such as sea salt, white truffle paste, jams and biscuits. Head here for a meal or brunch during weekends.

Trattoria L'Ancora
789 Bukit Timah Road

Another Italian eatery has popped up along the stretch of road just before Sixth Avenue. This casual restaurant serves homemade pastas such as Fettuccine al Coniglio, which is braised rabbit meat with handmade flat egg pasta thyme and Tagatosche olives, pizzas and mains such as cod fish and steak.

Al Borgo
383 Bukit Timah Road, Alocassia Apartments #01-02

Home-style Italian cuisine. The restaurant has a wide selection of pastas and pizzas. Tuck into a chocolate lava cake doused in Grand Marnier for dessert.

Swiss Grill
587 Bukit Timah Road, Coronation Shopping Plaza, #01-05

This bistro, operated by the people behind Swiss Butchery in Greenwood Avenue, serves burgers, grilled meats and sausages. Opt for a burger with the lot which comes with grilled premium chuck beef, bacon, an egg cooked sunny-side up, cheddar cheese and gherkins.

Burger Shack
559 Bukit Timah Road, King's Arcade, #01-01

Tuck into burger patties made from fresh New Zealand beef mince, served on homemade buns. Try the popular pulled pork burger.

Himalaya Kitchen
557 Bukit Timah Road, Crown Centre, #01-12

North Indian and Nepalese cuisine. This small restaurant seats only 40 people and served Indian fare such as dhal, palak paneer and Nepalese dumplings or momos. Try its signature dishes, including zasta kebab, a chicken kebab with spices, and semi-dry prawns marinated with spices and cooked with onion and tomatoes.

Xin Wang Hong Kong Cafe
587 Bukit Timah Road, Coronation Shopping Plaza, #01-04

This Hong Kong-styled cafe serves all-day dishes such as Black Pepper Chicken Chop with Rice, noodles, French Toast, Pork Chop and pastas.

My Thai
833 Bukit Timah Road, Royalville, #01-06

This eatery has three Thai chefs cooking up tasty fare such as deep-fried sea bass served with a spicy coconut sauce, black pepper squid and favorites such as Tom Yum soup and mango salad. It also has a non-spicy menu for your young ones such as pasta and pineapple rice.

Estivo Gelato Cafe
383 Bukit Timah Road, Alocassia Apartments #01-05 

Previously at Greenwood Avenue, this store offers 18 gelato flavors at any one time, including cantaloupe, hazelnut, durian and mint chocolate chip. Tuck into waffles, crepes and other desserts such as apple crumble and tiramisu. Simple divine! 

Marble Slab Creamery
501 Bukit Timah Road, Cluny Court, #01-05B

Ice cream is mixed with toppings presented on a cold marble slab. You can pick toppings such as cookies, nuts and chocolate bards to be mixed into an ice cream flavor of your choice.

3 Inch Sin

501 Bukit Timah Road, Cluny Court, #02-27

The shop sells chocolate lava cakes or molten cakes, which ooze liquid from the center. The cakes come in a range of flavors  such as mint, raspberry, bitter orange and peanut butter. 

Sogurt

617 Bukit Timah Road 

Head here for your frozen yogurt fix. The self-service joint lets you swirl your own fro-yo. Choose from eight flavors, including mint, peach and mango, blueberry acai and raspberry pomegranate. Toppings include Oreos, fruit, digestives, sprinkles and marshmallows.

Taste Matters

501 Bukit Timah Road, Cluny Court 

The dessert parlor has ice creams, sorbets and desserts, such as creme brulee, lemon curd and chocolate fondant. Signature items include lavender ice cream served with French tuile, and grapefruit sorbet. Items on the menu vary depending on the availability of fresh ingredients.

Durian Lingers

833 Bukit Timah Road, Royalville, #01-08

A tropical fruit shop that sells a variety of fruit such as rambutans and mangosteens, and stock fresh durians from Malaysia. As the durian season approaches, you can expect varieties such as Mao Shan Wang, D24, Sultan, Red Prawn and D666.

Feel free to drop me comments, reviews or pictures of the places featured here or other places you like, cheers!