 Standard Chartered brings back dividends as profits jump Hong Kong (AFP) Feb 27, 2018 - Banking giant Standard Chartered on Tuesday announced a return of dividends for shareholders after a two-year hiatus as it reported a surge in annual profits following restructuring and cutbacks. The Asia-focused lender said it would pay out a full-year dividend of 11 cents per share, citing "improving financial performance and strong capital". It also said pre-tax profit jumped 175 percent on-year to $3.01 billion in 2017. Shares in the firm rose almost two percent in afternoon Hong Kong trading, having been in negative territory before the results were announced during the break. Standard Chartered swung back to profit in 2016, a year after scoring its first annual loss for more than a quarter of a century as it struggled to cope with the effect of bad debts and misconduct fines. Chief executive Bill Winters described the performance as "steady rather than spectacular" but said it had improved significantly. Winters replaced former CEO Peter Sands in 2015 after shareholder calls for a boardroom cull in response to profit warnings. The London-based bank announced 15,000 job cuts around the world that year and said it would exit or restructure $100 billion of assets to refocus on affluent retail clients. Winters said the bank was ahead of plans to remove "inefficient cost", adding that it had focused investment in areas including business in China and Africa. But analysts said the bank still had a way to go in its turnaround. The results fell just short of Bloomberg analysts' expectations -- they had forecast a $3.1 billion in pre-tax profit. Jackson Wong, of Huarong International Securities, said the bank needed to find a new focus for growth, rather than concentrating on cutbacks, adding that HSBC was in a similar position after missing some profit forecasts last week. "They don't have a core way to grow their business," Wong told AFP. "Because they cannot find growth, they cut more cost. And if they cut more cost, they have less resources to find growth as well." However, Wong said Standard Chartered's dividend payout would keep investors happy. "Obviously from the business environment standpoint they are in a much better shape than last year," he added. Regulatory costs of $1.3 billion were 15 per cent higher year-on-year, the bank said, attributing it to newly introduced programmes. Chairman Jos� Vi�als said improving the bank's response to financial crime was a "critical journey". In August 2014, Standard Chartered was hit by US regulators with a $300 million fine and restrictions on its dollar-clearing business for failing to detect possible money-laundering. It paid $667 million in 2012 to settle charges that it had violated US sanctions by handling thousands of financial transactions involving Iran, Myanmar, Libya and Sudan.
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China's factory expansion slowed again in February as output and export orders dropped due to the Lunar New Year holidays, hitting a 19-month low, official data showed Wednesday.
The manufacturing purchasing managers index (PMI), a gauge of factory conditions, came in at 50.3 in February, the National Bureau of Statistics (NBS) said, compared to 51.3 in January.
Anything above 50 is considered growth while a figure below that points to contraction.
The indicator fell short of the 51.1 reading that analysts expected, according to a survey by Bloomberg News.
It marked a slowdown for the third consecutive month and the lowest reading since August 2016.
"The growth rate of the manufacturing industry has eased to some extent", NBS analyst Zhao Qinghe said in a statement, adding that factories had reduced output during the week-long Chinese New Year holidays.
Workers went home for the Spring Festival and prices fell due to weaker supply and demand. New export orders and imports also fell, Zhao said.
"This highlights the risk of a cyclical downturn in the global electronic supply chain and has a direct bearing on the regional trade outlook," Raymond Yeung at Australia & New Zealand Banking Group told Bloomberg.
Although Spring Festival falling in February this year distorted the data, when "averaging across the first two months of the year, the data still point to a clear slowdown in early 2018", Julian Evans-Pritchard of Capital Economics said in a research note.
Nomura's chief China economist Zhao Yang believes the data suggests "a weakening of growth momentum in the manufacturing sector, possibly led by a slowdown in property and fixed asset investment."
China has curbed activity in heavy industries in the country's northeast in an effort to reduce surplus capacity and lessen the heavy smog that typically blankets the region during the winter months.
"Looking ahead, I think the overcapacity cuts will still be a major theme this year, only that the focus might be shifted to sectors such as cement and glass from steel and coal in 2017," Iris Pang, an economist at ING Group told Bloomberg News.
Hong Kong cash surplus hits record but critics hit out at budget
Hong Kong (AFP) Feb 28, 2018 -
Hong Kong Wednesday reported a record surplus of almost US$18 billion thanks to a red-hot property market and announced wide-ranging tax cuts in its annual budget, but critics said the measures did too little to help the city's poor.
Financial Secretary Paul Chan said the business hub had amassed a HK$138 billion ($17.7 billion) budget surplus and he wanted to "share the fruits of our economic success with the community".
He unveiled plans to slash salaries tax by up to 75 percent, with a ceiling of HK$30,000, a move which he said would benefit almost two million people.
There were also payments of HK$2,000 to students in need, along with extra welfare allowances for the poor, the disabled and the elderly.
But there was no one-off cash handout to all permanent residents, as some had called for.
The government of Chief Executive Carrie Lam also plans to build 100,000 public housing flats in the next five years, including subsidised properties for sale.
The budget will be welcomed by the middle class in the semi-autonomous Chinese city, but critics said it failed to address long-term poverty problems. An official study last year showed nearly 20 percent of Hong Kong's 7.35 million people live below the poverty line.
The wealth gap last year was at its widest for nearly 50 years, fuelling discontent as the former British colony marked two decades under Chinese rule.
Property prices are among the world's most expensive, forcing some small businesses to close due to sky-high costs while many residents cannot afford to buy or rent decent homes.
While Hong Kong enjoys high per capita GDP of US$46,000, Chan warned about its "slower growth momentum" with a mere 2.7 percent average annual economic growth over the past decade.
Demonstrators gathered outside the legislature before the budget speech, accusing the government of not doing enough to help ordinary people.
Some social media users were also unhappy.
"Carrie Lam and (Paul Chan) are still returning wealth to the wealthy while ignoring the general public who are living in misery. Shameful!" said a Facebook page organised by pro-democracy activist Lau Siu-Lai.
Another Facebook user wrote: "I'm not qualified for public housing as a taxpayer while (prices for) private flats are sky-rocketing. This government has given up on us again."
Embattled Noble Group reports nearly $5.0 billion net loss
Singapore (AFP) Feb 28, 2018 -
Crisis-hit commodities trader Noble Group on Wednesday reported a massive net loss of almost $5.0 billion last year despite selling many of its assets to try to ensure survival.
Noble, which is headquartered in Hong Kong, has been hammered since 2015 as plunging commodity prices hit its bottom line. It has also suffered a ratings downgrade and allegations of irregular accounting practices.
The once-mighty firm has embarked on a debt-for-equity rescue plan while it seeks investors to avert collapse.
Net loss for the 2017 financial year ended December came in at $4.94 billion, Noble said in a statement filed with the Singapore Exchange where it is listed.
This compared with a tiny net profit of $8.7 million in 2016 and a loss of $1.7 billion in 2015.
Last year's loss included $1.05 billion from operations the company has sold and $3.2 billion in exceptional items from businesses that remain, said a statement released after the market closed.
Noble shares fell 2.8 percent to close at 17.2 Singapore cents (13 US cents).
The company however said it was making progress on a rescue plan. "Restructuring discussions with the group's stakeholders continue to be productive," it said.
Noble last week warned investors about the impending net loss and Goldilocks Investment Co, one of the firm's top shareholders, described its magnitude as "extremely shocking".
Noble has sold assets, including its American oil-liquids business and a US gas and power unit, in a bid to repay debts.
It also wants to refocus its business on hard commodities -- those that are mined, like coal and metals -- as well as on freight and liquefied natural gas.
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