Singapore Expects Growth, But Asset Bubbles a Worry

Singapore Expects Growth, But Asset Bubbles a Worry

Singapore sees a return to modest growth and higher inflation next year, which may spur the central bank to tighten policy in April by allowing its currency to gradually strengthen.

The central bank joined other policy makers around Asia in saying it was watching property prices and lifted its 2010 inflation forecast to between 2.5 and 3.5 percent on Thursday, as a flood of foreign investment raises asset bubble worries.

The upward revision to inflation came after Singapore’s economy surged 14.2 percent in the third quarter on a seasonally adjusted annualized basis, revised slightly down from an earlier estimate of 14.9 percent growth but in line with forecasts. Reuters

China Purchase of AIG’s Taiwan Unit Faces Hurdles

Taiwan is raising concerns that the buyers of AIG’s Nan Shan Life insurance unit, China Strategic and Primus Financial, are backed by China-sourced funds, complicating the approval process behind the $2.15 billion deal, an official said on Thursday.

Officials are worried the consortium will not live up to its promise of owning the insurer for at least seven years. The scrutiny of the deal is likely to delay the transaction and increase the politics behind it.

At worst, Taiwan officials could strike down the acquisition announced in October, dealing a major blow to American International Group, once the world’s largest insurer and now 80 percent owned by the US government after receiving $180 billion in aid. Reuters

California to Pull the Plug On Energy-Inefficient TVs

Power-hungry TVs will be banned from store shelves in California after state regulators on Wednesday adopted a first-in-the-nation mandate to cut electricity demand.

On a unanimous vote, the California Energy Commission required all new televisions with screen sizes of 147 centimeters or greater be more energy efficient, beginning in 2011. The requirement will be tougher in 2013, with only a quarter of all TVs currently on the market meeting that standard.

The commission estimates that TVs account for about 10 percent of a home’s electricity use. The concern is that the energy draw will rise by as much as 8 percent a year as consumers buy larger televisions, add more to their homes and watch them longer. AP

Miller Crying Over Its Beer Due to 32% Profit Plunge

SABMiller, the world’s second-largest brewer, on Thursday reported a 32 percent drop in earnings as revenue was hit hard by unfavorable currency movements and lager volumes declined by 1 percent.

For the six months ended in September, the company that brews Grolsch, Pilsner Urquell and Peroni Nastro Azzurro lagers said net profit was $973 million, compared with $1.42 billion in the year-earlier period.

Earnings comparisons were skewed by exceptional gains of $404 million last year after the beer maker booked a profit from its role in establishing joint-venture MillerCoors, while in the most-recent period the company reported exceptional charges of $211 million. AP

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