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.

First Sponsor plans rights and bonus issues to raise up to $399 mil

SINGAPORE (Mar 25): First Sponsor Group is undertaking a rights issue of securities with detachable warrants as well as a bonus issue to raise up to $399.3 million for expansion. This comes after the property developer aborted plans for a rights issue involving warrants exercisable into perpetual convertible capital securities which are, in turn, convertible into ordinary shares. In its Monday filing, First Sponsor plans to issue up to 113.7 million free detachable warrants and 79.6 million bonus warrants. Under the rights issue, shareholders are entitled to one Series 2 convertible s....
Read More >>

CSE Global rated 'buy' by UOB on strengthening grip over Aussie market

SINGAPORE (Mar 26): UOB Kay Hian continues to rate CSE Global a “buy” with a target price of 62 cents. This came on the back of the group announcing on Mar 22 that it will be acquiring a new subsidiary – RCS Telecommunications – for of A$11.64 million ($11.26 million), which represents approximately 1.64 times RCS’s NTA. The acquisition of 100% of the issued share capital of the Australian limited liability company was done by the group’s wholly-owned subsidiary, CSE Crosscom. This is CSE’s second acquisition this year and upon completion of the acquisition, RSC will bec....
Read More >>

mm2 Asia cut to 'hold' by Maybank despite latest box office showing

SINGAPORE (Mar 26): Maybank Kim Eng would rather wait for mm2 Asia’s cinema division to make disclosures in its fiscal-year-end reporting before changing its forecasts. Good showing at the box office by mm2’s latest movie “More Than Blue” has led to another tie-up with Fox Networks Group Asia which has likely driven the stock’s recent re-rating. Unfortunately, mm2’s Cathay cinema acquisition “has clouded all interim visibility of its production business and overall prospects” due to leverage. And although upcoming fiscal-year results could provide visibility of all par....
Read More >>