DAILY MARKET UPDATES 7th November 2008

Las Vegas Sands in perilPWC LLP said in the filing that Las Vegas Sands expects it will not be in compliance with its maximum leverage ratio covenant for the quarter ending Dec 31, 2008 and at subsequent quarters. The auditor said that non-compliance would result in defaults which raises substantial doubt about the company's ability to continue as a going concern. The company said in a filing that it is working with a financial adviser on a capital-raising programme but that no assurances can be given that the programme will be successful. - The Business Times, P1(See also, The Straits Times, B22 – “Las Vegas Sands shares fall 31% on funding woes”)
NEA puts up $22m grant for energy-saving projectsNEA launched a grant yesterday that would co-fund up to half of the cost of energy-saving equipment or technology, or $2 million per project, which ever is lower. The National Environment Agency (NEA) launched a grant yesterday that would co-fund up to half of the cost of energy-saving equipment or technology, or $2 million per project, which ever is lower. NEA has received 119 applications to co-fund energy appraisals that would save 339.2GWh or $29.8 million of energy per year. Just 16 companies have implemented projects, for a total energy savings of 80.2GWh or $4.83 million annually.- The Business Times, P8
(See also, The Straits Times, B12 – “$22m carrot for firms to setup energy efficiency”)
JLL reorganises to help clients battle credit crisisThe firm plans to reassign 30 senior managers and hundreds of staff to help clients consolidate office space, renegotiate or sell loans, sell distressed properties and value illiquid real estate-related securities. Revenue from arranging property sales and financing in the Americas dropped 42 per cent in the first nine months of this year at Jones Lang, the No 2 broker by market value. The company will focus on banks and insurance companies, offering what it calls 'value recovery services.'.- The Business Times, P14
Next Budget to help drive growth S’poreans can expect an expansionary Budget next year, with measures to create jobs, generate growth and cushion them from the worst effects of an economic slowdown, said SM Goh Chok Tong yesterday. He did not give details on the likely steps to be taken, but economists interviewed last night believe these could include cost-cutting measures for businesses, and tax rebates or cash handouts for families. - The Straits Times, A3
Mah: No delay to HDB, govt building projects Public housing and government building projects will not be delayed on account of the economic downturn, said Mah Bow Tan. On other building projects, he said: 'Other government projects...infrastructure projects, MRT projects, road-building, schools, all those things we felt are urgent and necessary - for example, retrofitting Nanyang Technological University for the Youth Olympic Games - all are on track. It's something we need to do.'
- The Straits Times, B12(See also, The Business Times – “Govt to watch market before deciding : Mah”)
KL luxury condo sector in for tough timesMore than 5,000 high-end units are expected to come onstream in Klang Valley alone by the end of 08, followed by a similar number in 09. As a result, rental yields, which now average 5-6 per cent gross in the KL city area and about one percentage point more in the Mont Kiara area, are expected to be severely depressed by the end of next year. Property consultants say that a slowdown in launches and softer demand is to be expected, given fears of lower economic growth of 3-plus per cent next year, down from 5-plus this year. Capital appreciation in Kuala Lumpur has also been decent on average, plus incoming housing supply is 'still manageable'.- The Business Times, P11
UK surprises with 1.5-point rate cutThe Bank of England made a 1.5 percentage point cut in interest rates yesterday to just 3 per cent, their lowest level in more than half a century, as it seeks to prevent Britain from sliding into a deep recession. Two-year bond yields fell to a record low below 2.5 per cent. The Swiss National Bank and European Central Bank (ECB) also cut interest rates yesterday. The move took the ECB's and Swiss National Bank's benchmark rate to 3.25 per cent and 2 per cent respectively. House prices started sliding a year ago as the supply of new mortgages has all but dried up in the wake of the credit crunch. - The Straits Times, B33(See also, The Business Times, P33 - “Bank of England, ECB slash interest rates”)
IMF warning: world economy slowing quicklyIMF forecasts that world growth will fall to 3.75 per cent this year from 5 per cent in 2007 and will drop to 'just over 2 per cent' in 2009. The IMF says that its new forecasts are based on current policies. Global action to support financial markets and provide further fiscal stimulus and monetary easing can help limit the decline in growth. China is forecast to grow 9.7 per cent this year but the IMF predicts this to fall to 8.5 per cent in 2009, which is significantly below China's own current official forecast. Growth in the five biggest Asean economies is forecast to fall to 4.2 per cent in 2009. India's growth is put at 6.3 per cent in 2009.
- The Business Times, P3
India's credit growth unlikely to slow in H2The nation's biggest bank will cut its lending rate by 0.75 percentage point effective Nov 10. India has said that it will make sure that loans are available to companies as turmoil in the global financial markets leads to a credit freeze. India's state-run banks were facing increased credit demands as other loan sources had dried up. The Reserve Bank of India cut the amount lenders must set aside as reserves to 5.5 per cent from 6.5 per cent on Nov 1, and reduced the amount that lenders are required to keep in government bonds to 24 per cent from 25 per cent and lowered the repurchase rate to 7.5 per cent from 8 per cent. The central bank deployed all three of its main tools to boost growth for the first time in more than a decade.- The Business Times, P13
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