Are we headed for another recession?

Are we headed for another recession?

By: 
Benjamin Cher & Jeffrey Tan
07/09/18, 03:12 pm

SINGAPORE (Sept 7): The outcome of the Global Financial Crisis (GFC) has altered the business and economic landscape — for better or worse.

First, tighter regulations in the financial services industry were introduced in the US, including the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in 2010. Globally, including in Singapore, Basel III required banks to have higher capital and liquidity requirements.

The GFC’s warning signs had been missed by the financial markets community, from economists to bankers and analysts.

Nevertheless, industry observers contend that lessons learnt from the GFC were manifold: from spotting overleveraging and asset bubbles, to unrestricted capital flows and vulnerabilities in large financial institutions, as well as issues surrounding liquidity management and counterparty risks.

Ten years on from the GFC and signs of an impending recession can be observed, notably a flattening yield curve, or the spread between the short-term and long-term yields on US Treasury notes. 

What do these mean? Are they warning signs, or just “the new normal”?

Find out what economists and market watchers think in our cover story, After Lehman, this week in issue #847 of The Edge Singapore, which is available at newsstands today.

Sasseur REIT rides on China's love for luxury goods

SINGAPORE (Apr 23): Following a site visit to Sasseur REIT’s outlet malls – Chongqing mall and Hefei mall – during their annual Spring sale, the REIT has attracted the attention of Phillip Capital. In an unrated report on Monday, analyst Natalie Ong says, “Sasseur’s outlet malls not only offer large discounts on branded goods targeted at the middle class, brand-conscious consumer, but also incorporate numerous activities and entertainment programmes to engage different age group.” According to Ong, luxury retail demand is expected to grow in China. Globally, Chinese consumers....
Read More >>

Don't demonise China but neither be its vassal state: Ho Kwon Ping

SINGAPORE (Apr 23): The current United States and China trade tensions, businessman Ho Kwon Ping thinks, is not about a trade war but about a paradigm shift towards China becoming a major global player who does not want to play by Western rules. Ho says: “The current US-China tensions are not only not about the trade war, it is not even about geopolitical or geo-economic rivalry. It is about an entire paradigm shift in civilisational relationships which has not happened for the last 200 to 300 years ever since the ascendancy of Western civilisation to become the dominant civilisation in t....
Read More >>

UOB KayHian remains positive as SPH turns to student accommodation to arrest flagging media business

SINGAPORE (Apr 23): Despite continued weakness in its core media business, UOB Kay Hian is staying positive on Singapore Press Holdings (SPH) on the back of its foray into the student accommodation segment. SPH last week announced it has acquired a portfolio of three purpose-built student accommodation (PBSA) assets in the UK for £134 million ($237 million). See: SPH expands UK student dorm portfolio with $237 mil acquisition The assets span three cities in the UK – Southampton, Sheffield and Leads – and has a total capacity of 1,243 beds, bringing SPH’s total portfolio to over....
Read More >>