| Briefing - ASIA REAL ESTATE - Aug 3, 2007
Rents have risen at their highest rate in 18 years because investors have sold property assets to boost their superannuation, housing economists say. And an interest rate rise next week would make buying a home even harder for those hit already with higher rent. PIONEER GROUP INAUGURATES US$5 MLN BUILDING IN CEBU CEBU CITY - The Pioneer Group recently inaugurated its P230 million (US$5 million) building at the Cebu Business Park, the city's new business district. Pioneer president and chief executive officer (CEO) Lorenzo Chan said the company already had plans for expansion since 1961, and "Cebu is the first place that came into our mind." AUST'S MACARTHURCOOK SAYS NO DIRECT EXPOSURE TO US SUB-PRIME SYDNEY - Property investor MacarthurCook (ASX:MCK) says it has no direct exposure to the US sub-prime mortgage market.
Sensex plunges 4% on credit concerns
MUMBAI: Indian share prices plunged 4 % yesterday on higher cash reserve amounts for banks and fears that overseas funds may exit emerging markets over US credit woes, dealers said.
They said that overseas funds led the sell-off sparked by heavy losses on Wall Street after further problems in the US home loan market while Indian banks were hurt by Tuesday�s increase in their cash reserve requirement.
The Bombay Stock Exchange�s benchmark 30-share Sensex index closed down 615.22 points to 14,935.77.
�There are risk-linked concerns across the global markets. The US subprime loan issue could take weeks to clear so the near term scenario appears weak,� said Ved Prakash Chaturvedi, managing director of Tata Mutual fund.
On Tuesday, the Reserve Bank of India (RBI) hiked the amount of deposits banks must set aside by 50 basis points to 7% in an effort to cut the amount of money available for loans sought by consumers and businesses.
Bernanke Faces His First Big Financial Test
WASHINGTON -- Turmoil in financial markets amid deepening concern about a credit squeeze is leading investors increasingly to expect the Federal Reserve to cut interest rates. But many economists question if the central bank will -- and should -- act. Some economists, such as Maria Fiorini Ramirez, who runs her own economic consulting firm in New York, say the Fed should cut rates to help restore confidence in a financial system quivering amid the subprime mortgage mess. "In times of crisis, you need someone to stand up and say, ... 'We'll do what is needed,'" she says. But others argue that the problems in the financial markets are not spilling over into the broad economy. And with Fed Chairman Ben Bernanke and his colleagues continuing to focus on bringing down inflation, a rate cut now doesn't make sense, they argue.
Taylor Wimpey Profit Beats Estimates; Raises Target (Update3)
July 31 (Bloomberg) -- Taylor Wimpey Plc, Britain's biggest homebuilder, posted a first-half profit that beat analyst estimates and raised its target for cost savings from the merger that created the company. The stock climbed as much as 9.7 percent. Taylor Wimpey, created July 3 by the merger of Taylor Woodrow Plc and George Wimpey Plc, predicted 100 million pounds ($203 million) in annual savings compared with an earlier goal of 70 million pounds. Pro-forma pretax profit at the London-based company totaled 259 million pounds in the first half. Taylor Wimpey, which builds a range of apartments and family homes in the U.K., Spain and North America, has cut about 5 percent its workforce, reduced building costs and improved supplier agreements to boost profitability.
Home loan standards tightened
Washington — A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as Alt-A loans that offer such features as limited verification of incomes. The Fed survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat." The Fed's latest quarterly survey of bank loan officers found them responding to growing troubles in subprime mortgage lending.
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