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Transactions of presidency subsidised houses sink to document low in October as property market wobbles – NEWPAPER24

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Transactions of presidency subsidised houses sink to document low in October as property market wobbles

2018-11-09 02:31:32


Hong Kong’s falling personal housing costs are weighing closely on the gross sales of presidency subsidised houses.

The variety of transactions of used House Possession Scheme (HOS) flats fell to 180 in October from 451 in Might – the bottom since data started in 1996, in keeping with knowledge from Ricacorp Properties. Transaction quantity additionally fell by practically 60 per cent from HK$2.Three billion to HK$930 million in the identical interval.

Hong Kong’s personal residence costs fell by a mixed 1.5 per cent from July to September, in keeping with knowledge from the Ranking and Valuation Division after the 28-month rally got here to an finish in July.

Information from Midland Realty confirmed that total transactions – each personal and authorities subsidised flats sank 60.7 per cent from 4,976 in Might to 1,957 in October.

“Consumers’ confidence has been very a lot affected due to the US-China commerce warfare, plunging inventory market and bigger reductions for newly launched HOS flats,” mentioned Derek Chan, head of analysis at Ricacorp.

The market took time to digest Chief Govt Carrie Lam Cheng Yuet-ngor’s coverage measures introduced in late June aimed toward bringing extra inexpensive housing provide, together with chopping costs of House Possession Scheme flats by 18 per cent. However costs have finally moved decrease.

The typical worth of used HOS flats slipped 4.Four per cent to HK$5.19 million in October, sliding for a second month. The declines have taken costs again to June ranges of HK$5.2 million after they touched a document excessive of HK$5.44 million in August.

The variety of transactions of used flats underneath HK$5 million additionally fell to the bottom degree ever in October at 715 since data started in 1996, in keeping with Land Registry knowledge compiled by Midland Realty.

Ricacorp’s Chan mentioned the transactions of used authorities subsidised houses may stay depressed for a few months but it surely may get better barely firstly of subsequent yr.

The variety of transactions within the used public rental housing phase marked a four-quarter low within the July to September interval at 161, down 14.Four per cent from the April to June interval, in keeping with brokers Hong Kong Property.

In Hong Kong, authorities subsidised HOS flats may be bought to patrons eligible for the scheme with out paying a premium, or within the secondary market to patrons not eligible for the scheme after paying a premium set by the federal government.

Most sellers of such flats may web a achieve even after paying the premium due to the excessive reductions provided by the federal government initially.

As an example, a three-bedroom flat of 592 sq. ft in Charming Backyard in western Mong Kok shocked the market after altering palms at HK$10.65 million in late July, the very best worth ever paid for a subsidised housing unit in Hong Kong.

The vendor is estimated to have made a web achieve of greater than HK$5 million after holding it for 20 years. The unique proprietor, who purchased it for HK$1.82 million in November 1998, would have needed to fork out about HK$3.5 million, a 3rd of the worth as premium on the sale.

In early October, one other flat of the identical dimension in the identical property solely fetched HK$5.58 million with out premium.



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Oil slumps 6 pct as rout runs to 12 days on supercharged promoting – NEWPAPER24

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Oil slumps 6 pct as rout runs to 12 days on supercharged promoting

2018-11-13 19:37:21

NEW YORK (Newpaper24) – Oil’s slide accelerated on Tuesday, with U.S. futures dropping to lows not seen in 11 months on account of ongoing worries about weakening world demand, oversupply and selloffs throughout different asset lessons, together with equities.

FILE PHOTO: Steam is emitted from a oil refinery in Sodegaura, Japan February 8, 2017. Newpaper24/Issei Kato

U.S. futures had been on observe to shut decrease for a document 12th straight session, with Tuesday’s selloff the worst but. Greater than 830,000 contracts had modified fingers as of 1:45 p.m. EST (1845 GMT), as funds shed positions with oil dropping to December 2017 lows.

“It’s like a run on the financial institution,” mentioned Phil Flynn, analyst at Worth Futures Group in Chicago. “It’s attending to the purpose the place it doesn’t appear to be about fundamentals anymore, however a complete collapse in worth.”

Oil costs had been hit on Monday after U.S. President Donald Trump put strain on the Organisation of the Petroleum Exporting Nations to not reduce provide to prop up the market. That got here after studies that Saudi Arabia was contemplating a manufacturing reduce on the December OPEC assembly, on elevated alarm that offer has began to outpace consumption.

“Twelve days in a row is insane – however there are lots of items placing strain available on the market,” mentioned Bob Yawger, director of vitality futures at Mizuho.

He mentioned rising considerations about weak world demand, rising U.S. manufacturing, and speculators quickly bailing out of lengthy positions had been main components for the drop.

U.S. crude futures CLc1 misplaced $3.59, or 6 p.c, to hit $56.35 a barrel, lowest since December 2017, as of 1:45 p.m. EST (1845 GMT), placing it on observe for its largest one-day share loss since January 2016.

Brent LCOc1 dropped $4.03, or 5.Eight p.c, to $66.09 a barrel.

Each benchmarks have fallen greater than 20 p.c since peaking at four-year highs in early October.

In its month-to-month report, OPEC mentioned world oil demand subsequent yr would rise by 1.29 million barrels per day, 70,000 bpd lower than predicted final month and the fourth consecutive forecast reduce. Output, nevertheless, rose by 127,000 bpd to 32.9 million bpd, OPEC mentioned.

“OPEC lowered its demand forecast, and that provides them cowl for reducing manufacturing,” mentioned Flynn.

Saudi Vitality Minister Khalid al-Falih mentioned on Monday OPEC agreed there was a necessity to chop oil provide subsequent yr by round 1 million barrels per day (bpd) from October ranges to forestall oversupply.

Even because the Saudis floated the potential for a reduce in manufacturing, the promoting has not abated.

Mizuho’s Yawger famous that the potential pullback in Saudi output has partly already been made up by the sharp bump in U.S. manufacturing, which reached 11.6 million bpd in the latest week, a brand new document. As well as, Russia has given blended alerts a couple of reduce, with Lukoil CEO Vagit Alekperov saying Monday he didn’t see cuts being mandatory.

“They’ll’t make up their minds on a cutback or not,” mentioned Yawger. “These unusual bedfellows not appear to be they’re in the identical mattress anymore.”

Trump on Monday mentioned he hoped OPEC is not going to reduce manufacturing, making it clear he desires oil costs to fall.

The steep decline has occurred as speculators have pulled again on their heavy bets on oil. Hedge funds and different cash managers have decreased their lengthy place in oil contracts to their lowest since August of 2017 final week.

Reporting by David Gaffen in New York; extra reporting from Christopher Johnson in LONDON and Henning Gloystein in SINGAPORE; Enhancing by Newpaper24 and Marguerita Choy

Our Requirements:The Thomson Newpaper24 Belief Ideas.
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Juul quickly suspends retail gross sales of most flavored e-cigarettes  – NEWPAPER24

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Juul quickly suspends retail gross sales of most flavored e-cigarettes 

2018-11-13 19:00:00


Juul mentioned it would cease promoting most of its flavored nicotine pods for its e-cigarettes in retail shops — although solely quickly — because it tries to appease federal regulators who’ve ordered the corporate to assist cut back “epidemic” ranges of juvenile use.

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Vodafone dials in dividend regardless of lower strain – NEWPAPER24

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Vodafone dials in dividend regardless of lower strain

2018-11-13 16:39:00

Typically, as a chief government, what you do not do is simply as vital as what you do.

Nick Learn, the brand new chief government of Vodafone, has proved this in spades at present because the cellular large unveiled its half-year outcomes.

Issues have been mounting amongst buyers that Vodafone’s dividend is unsustainable.

The corporate spent massive to turn out to be Germany’s largest cable operator in a blockbuster cope with Liberty World (the proprietor of Virgin Media) earlier this 12 months and, whereas it funded that transaction in an ingenious method that preserves its investment-grade credit standing, the corporate’s web debt on the finish of September nonetheless stood at €32.1bn – an increase of 6.4% on a 12 months earlier.

Nick Read. Pic Vodafone
Picture: Nick Learn, who was the corporate’s chief monetary officer, took over as CEO in October. Pic Vodafone

And, with Vodafone going through massive prices with the roll-out of 5G companies, it has attracted ideas that the dividend is unsustainable.

Having fallen by 39% to date this 12 months, the shares have been yielding greater than 8% going into these outcomes, often an indication that the market is anticipating a dividend lower.

Accordingly, it got here as a aid when Mr Learn stated this morning that whereas the dividend can be frozen till Vodafone can decrease its money owed, it is not going to be lower.

This can be a firm that has turn out to be more and more vital to UK institutional buyers throughout current years.

It’s reckoned to account for £1 in each £14 value of dividends paid by all listed corporations over the last decade. That significance turned all of the better when, for instance, the flexibility of the banks to pay massive dividends turned curtailed following the monetary disaster.

Even having not lower the dividend, although, Mr Learn nonetheless confronted questions over how he pays for it.

One reply, provided at present, was cost-cutting. Vodafone plans to scale back its working prices by €1.2bn by 2021.

Some corporations usually are not at all times trusted once they pledge to scale back prices however, within the case of Vodafone, Mr Learn – the previous chief monetary officer – may at present level out that this would be the third consecutive 12 months through which prices have come down. He additionally indicated that the corporate may elevate capital by promoting its cellular masts.

Picture: Vittorio Colao left Vodafone after a decade in cost

And there have been additionally some clues within the accounts. Vodafone is at all times tough to get a deal with on on this regard.

The outcomes are invariably distorted by the impression of acquisitions, disposals and write-downs, the latter a legacy of Vodafone’s stupendous previous deal-making, and at present was no exception.

Half-year gross sales fell by 5.5%, to €21.8bn, reflecting forex fluctuations and the sale of its enterprise in Qatar.

The corporate reported a half-year lack of €7.8bn in the course of the interval in opposition to a revenue of €1.2bn in the identical interval final 12 months, primarily on account of impairment prices in Romania and Spain and a loss being booked on the disposal of Vodafone India, which has merged with one among its rivals.

But Vodafone is at all times an organization that has emphasised its capacity to generate money over regardless of the headline income or losses, with all their accounting distortions, could also be.

So the important thing slide in Mr Learn’s presentation to buyers was in all probability the one through which he identified the corporate expects to generate free money stream of €17bn within the three monetary years ending in 2019, 2020 and 2021, ample to cowl dividend funds, which presently value €4bn a 12 months.

Mr Learn argues this €5bn represents ample headroom, given a few of the different prices coming down the road, mainly 5G spectrum funds.

That stated, the Liberty World deal did take Vodafone’s borrowings to only in regards to the restrict of the place the corporate needs them to be, therefore the necessity for extra cost-cutting and potential asset gross sales.

That €32.1bn of web debt is supported, even after at present’s rise within the shares, by €45bn value of fairness.

The brand new chief government may additionally report that Vodafone is on the right track to develop its earnings earlier than curiosity, taxation, depreciation and amortisation (EBITDA) for a fourth consecutive 12 months however, worryingly, guided the market that progress this 12 months could also be decrease than some analysts had beforehand anticipated.

Furthermore, natural service revenues, the important thing measure of Vodafone’s core gross sales, truly went backwards within the powerful Italian and Spanish markets, whereas rising to solely a negligible extent in Britain and Germany.

So the larger image is that, for the foreseeable future, working at Vodafone might be not going to be terribly nice.

The corporate has little monetary room for manoeuvre, is enduring patchy progress in a few of its largest markets and faces a number of years of grinding out value cuts.

There was loads of unhealthy information already baked into the Share value. It’s tempting to invest that Mr Learn would have liked, as many incoming CEOs do, to take an axe to the dividend.

The issue was that, as a senior member of the administration crew already, the choice was closed to him.

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