Author: investingeast

Relationships Between Singapore and Russia

Commercial links between Singapore and Russia are growing. This progress was recently noted after the sixth session of the High-Level Russia-Singapore Inter-Governmental Commission (IGC) which took place in Moscow. The event was chaired by Mr Tharman Shanmugaratnam, the Deputy Prime Minister and Coordinating Minister for Economic and Social Policies along with Mr. Igor Shuvalov, the First Deputy Prime Minister of the Russian Federation.

There is interest by Singapore’s offshore and marine companies to have opportunities in Russia. Food production companies in both companies are also interested in having cross-border exports.

Both countries have agreed to start the process to negotiate for a comprehensive free trade agreement between Singapore and the Eurasian Economic Union (EAEU).

Learn more details here.

Scottish Beers Coming to China

A group of Scottish beer producers have set their sites on China, Hong Kong and Dubai. the Inveralmond Brewery in Perth and the Eden Mill Distillery and Brewery at Guardbridge have benefited from the Craft Beer Clan efforts.

As Eden Mill owner Paul Miller said, “This market has been fantastically good for us. The latest order has been our third to China through Craft Beer Clan in the last year. We are excited about the Chinese market which has a lot of potential for further growth for our brewery.”

The Craft Beer Clan is the international division of Glasgow-based food and drink wholesaler JW Filshill. Their goal is to help Scottish craft brewers and distillers enter the Asia Pacific region. It is currently working with 22 brewers and four craft distillers across Scotland. They have also brokered deals with importers in Taiwan and secured orders in Thailand and Panama.

As Chris Miller of JW Filshill International said, “We attended the key whiskey exhibition in Beijing and Shanghai in August with the Single Malt Club, our distributor in China. The Chinese market is key to our international growth as consumers, they are hugely interested in Scotland and have a particular appetite for Scotch whiskey as well as premium food and drink products.

 

Uber Battles it out in China

Uber is now hoping to raise $2.5bn for its China unit. This would double the amount the company has already raised.  They are locked, at the moment, in a fierce fight with their Chinese rival, Didi Kuaidi. They have already raised $3bn in a round that closed recently. The race for the market between the two companies will be determined by who can raise the most money. Uber’s Chinese investors include Baidu, while Didi’s include Tencent and Alibaba.
Uber has said it plans to invest $1bn this year in China. Chief Executive Travis Kalanick described it as “one of the largest untapped opportunities for Uber, potentially larger than the US”.

Uber just announced a new carpooling service in Chengdu, Southwest China. This is the first time that they have launched a brand new service outside of the US. The service is being called “UberCommute” and it will enable long-haul commuters to pick up other passengers for a free who are going in the same direction.

 

 

Netflix Comes to Japan

The Japanese market is abuzz with the news that Netflix, the streaming video provider, is coming to the Japanese market.  They entered the New Zealand and Australian markets in March of 2015 and they will be launching in Spain, Italy and Portugal in October. Their goal is to achieve a presence in 200 countries by the end of 2016.

As Reed Hastings, chief executive officer at Netflix said, “With its rich culture and celebrated creative traditions, Japan is a critical component of our plan to connect people around the world to stories they love. As we expand into Asia, we’re excited Netflix members increasingly will have access to some of their favorite movies and TV shows no matter where they are.”

Netflix plans to open a regional office in Tokyo. As Gregory K. Peters, who will be the general manager of Netflix Japan said, “It is an honor to bring Netflix to Japan, and we’ll work hard to please consumers there. People in Japan soon will have access to great entertainment from all over the world for a low monthly price, while our more than 57 million members will benefit from increased access to great Japanese films and TV shows.”

 

Financial Times Selling to Nikkei

Pearson is selling the Financial Times to the Japanese media group Nikkei for £844m in cash. The British company will hold onto FT Group’s 50pc stake in the Economist. It will also keep its building on the south bank of the Thames.

As Pearson’s chief executive, John Fallen, said, “Pearson has been a proud proprietor of the FT for nearly 60 years.

“But we’ve reached an inflection point in media, driven by the explosive growth of mobile and social. In this new environment, the best way to ensure the FT’s journalistic and commercial success is for it to be part of a global, digital news company.”

Read the whole story and more on the agreement.

China Real Estate Picking Up…But Only in Larger Cities

China’s metropolitan areas have witnessed a financial and property revival while the recovery in smaller cities has been much slower. The home sales volume in tier-1 cities surged 42.9% in teh first half of this year from last year. For tier-2 cities the uptick was 16.9% and for tier-3 cities there was a fall of 2.9%.

The recovery for the housing market in tier-3 and tier-4 cities is weighted down by high inventories, according to Zhang Dawei, chief analyst at Centaline.

China reduced the down payment levels for second-home buyers in March. It is now 40%, rather than the 60-70% that was previously required. They also exempted business tax for sales of homes that are purchased over two years ago.

Read the whole article to see more of the nuance of the issue.

Hong Kong Approves Government Spending for City Crossing

Hong Kong lawmakers have approved for the government to spend HK$17.5 billion to construct the city’s 7th crossing to Shenzhen. They discussed the idea for three weeks before coming to their current conclusion. This money will be put with the already approved HK$16.25 billion that was approved in July 2012.

Legco’s Finance Committee backed the funding after the 26-10 approval. Learn more about the process and the conflicts that arose around it.

Japan Announces $100 Billion Plan

Japan is set to announce a $100 billion plan to invest in roads, bridges, railways and other building projects in Asia. Prime Minister Shinzo Abe is set to unveil a five-year public-private partnership.

As Jiji Press reported, “The envisioned assistance is aimed at demonstrating Japan’s stance to contribute to building up high-quality infrastructure in Asia through human resource development and technological transfers and showing the difference from the AIIB, so that Japan can keep a high profile in the region.” Learn more with the full article.

Apple Sales up in China

For the first time Apple sold more iPhones in China than the United States. Apple’s iPhone sales in China skyrocketed recently, increasing the revenue in China by 71% to $16.8 billion. This was certainly helped by the upcoming Chinese New Year. Chief Executive Tim Cook also says that it’s a result of China’s expanding middle class.

In the last quarter, Apple sold a total of 61.2 million iPhones, up 40% from the year-ago quarter. It sold 12.6 million iPads, which is actually down 23% from a year ago.

As FBR Capital Markets analyst Daniel Ives said, “A 60 million-plus iPhone number is a home run and will be cheered by the Street as this remains the bread and butter of Apple.”

Read the article to get all the details.

Advice from Crescent Petroleum CEO in the Post-Saddam Hussein World

At the World Economic Forum in January, Majid Jafar, the CEO of Crescent Petroleum, called for leaders at the Annual Meeting of the World Economic Forum in Davos to place the economic stability high on their list of priorities.

Majid Jafar said, “The Arab Spring has now clearly turned into a winter of discontent. In parallel with all the political efforts, we need quick and urgent economic action to address the issue of high youth unemployment in the Middle East and North Africa (MENA) Region. Insufficient economic growth in the region has led to massive youth unemployment, in some areas more than 60%. This is turning into a demographic time-bomb. The recent fall in the oil price is also a warning that the region cannot be over-reliant on energy resources for GDP growth. We must create long-term sustainable economic growth. Employing our youth is the key to unlocking our true natural resource. We cannot achieve political stability without economic stability.”

One scheme Jafar suggests could address the issues around youth unemployment is the  Arab Stabilization Plan (ASP). This is a policy initiative for the region that would promote infrastructure investment and create jobs. The proposal, which takes its inspiration from the US-led Marshall Plan that was used to rebuild post-war Europe. The plan would prioritize infrastructure projects on a national level and would help with the economy in countries like Egypt, Jordan, Yemen, Tunisia and Iraq where, more than seven years after the Saddam Hussein was removed, the country’s infrastructure remains in tatters.

Majid Jafar explained that “The MENA Region is currently going through changes that are unprecedented in the last century. In many cases the region has failed to build national identities let alone a regional one, failed to build inclusive and stable institutions, and above all failed to build private-sector driven competitive economies. There is capital, but the region needs a focused multinational effort to create regional trust and direct it into long-term infrastructure investments. This will create employment and sustain economic competitiveness.”