US

ST Engineering partners City of Pensacola to build $290 mil MRO complex in the US

SINGAPORE (Oct 29): ST Engineering has agreed to jointly develop a 655,000 sf airframe maintenance, repair and overhaul (MRO) complex at the Pensacola International Airport as part of the group’s capacity expansion for its MRO business in the US.

The development will be undertaken by ST Engineering and the City of Pensacola over the course of four years and is expected to cost about US$210 million ($290 million).

A Memorandum of Understanding (MoU) was signed between both parties on Saturday.  

US, China agree to Asia defence rules to avoid air crashes

(Oct 20): Defence chiefs from the US and China agreed in principle to guidelines on encounters between warplanes, in the latest bid by Pacific nations to keep increased military activity from escalating into conflict.

Analysts see myriad opportunities in CapitaLand's US portfolio acquisition

SINGAPORE (Sept 19): CGS-CIMB Securities and DBS Vickers Securities are maintaining their “add” and “buy” calls on CapitaLand with the respective target prices of $3.55 and $3.62.

This follows news of the group’s foray into the US multifamily property segment with its recent billion-dollar acquisition, which both research houses are positive on.

CapitaLand acquires US portfolio of multifamily properties for $1.14 bil

SINGAPORE (Sept 18): CapitaLand has acquired a portfolio of 16 freehold, Class B multifamily properties in the US for US$835 million ($1.14 billion).

The portfolio comprises 3,787 apartment units in the suburban communities of Seattle, Portland, Greater Los Angeles and Denver, the sale and purchase agreement was signed through unit CapitaLand International. This translates to a price per unit of US$220,000, which is in line with market transactions.

CapitaLand’s latest acquisition marks the group’s foray into the country’s multifamily asset class.

Singapore added to Credit Suisse's preferred markets as 'the place to be' for equity investors

SINGAPORE (July 10): Credit Suisse says the Singapore market is the “place to be” for investors given it is trading at favourable valuations, offers a blend of cyclical exposure and is a beneficiary of higher interest rates.

At present, the Singapore market has a 12-month forward P/E ratio of 12.4 times which is below the 10-year average of 13.3 times, thanks to the recent pullback.

“Rising interest rates and higher oil prices are driving a rebound in earnings growth (15% in 2018),” notes Credit Suisse in a media statement on Monday.

Trade war won't be full blown; stay overweight on US, says DBS

SINGAPORE (July 2): Worries over trade tensions between the US versus China and Europe may have rattled markets in recent months, but DBS believes that a protracted, full-blown war is not likely to happen.

“End of the day, this will be resolved, it will not be full blown. Everyone recognises the costs,” says the bank’s chief investment officer Hou Wey Fook (photo).

US weighs fresh China talks amid split on Trump trade team

WASHINGTON (June 22): Some White House officials are trying to restart talks with China to avoid a trade war before US tariffs on Chinese products take effect July 6, three people familiar with the plans said, setting up a battle with others in the administration who favor a harder line.

US-China trade spat to have limited impact on Mapletree Logistics Trust's earnings, says OCBC

SINGAPORE (June 21): OCBC Investment Research is maintaining its “buy” call on Mapletree Logistics Trust (MLT) with a lower fair value estimate of $1.34 compared to $1.44 previously, after raising its discount rate assumption to 8.2% from 7.8%.

This stems from OCBC adopting a more conservative stance on the REIT, in view of uncertainties and negative sentiment surrounding ongoing trade tensions between the US and China.

Global economic growth is expected to rise, but it might not bode well for investors

SINGAPORE (Apr 4): Schroders is raising its global growth forecasts for the next two years on the back of buoyant economic activity, but warns of uncertainty for investors amid a corresponding rise in interest rates.

“Donald Trump’s plan to boost the US government’s spending by $300 billion has added fuel to a US and global economy already firing on all cylinders,” says Keith Wade, Schroders’ chief economist and strategist in an April note.

However, Wade believes global economic growth will be spurred by more than just the US’s spending plans.

Market volatility expected to rise as trade wars loom

SINGAPORE (Mar 29): Concerns about trade tensions seemed to ease early this week on news that China and US officials are negotiating ways to reduce trade imbalances. But investors should not break out the champagne just yet.

It is not so much the threat of a trade war that has put the market in risk-off mode. What has been more worrying is the difficulty of predicting what happens next.

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