Oil bounces from multi-year lows as hopes of OPEC+ cut offset virus impact

US West Texas Intermediate crude hit a 14-month low of $43.32 a barrel, before recovering to $45.23, up 47 cents, or 1.1%

Oil prices pared losses after earlier hitting multi-year lows on Monday as hopes that a bigger than expected production cut from OPEC and stimulus from central banks could offset economic gloom from the coronavirus outbreak.

Brent crude was at $50.32 a barrel, up 65 cents, or 1.3%, by 0105 GMT, after earlier dropping to $48.40, the lowest since July 2017.

US West Texas Intermediate crude hit a 14-month low of $43.32 a barrel, before recovering to $45.23, up 47 cents, or 1.1%.

Flight cancellations and travel bans by countries worldwide sparked fears about the global economy, leading to the biggest weekly stock market rout since the 2008 financial crisis last week. China's factory activity also shrunk at the fastest pace ever in February, underscoring the colossal damage from the coronavirus outbreak on the world's second-largest economy.

"On the one hand, it's pretty negative on worldwide crude oil and product demand," said Lachlan Shaw, head of commodity research at the National Australia Bank.

On the other hand, there was news Saudi Arabia was pushing for a million barrels per day cut to be agreed this week, while central banks globally were increasingly signalling an appetite to intervene and support markets by cutting interest rates, he said.

"So it's a balance and it's going to be pretty volatile."

Several key members of the Organization of the Petroleum Exporting Countries (OPEC) are mulling an additional production cut of 1 million barrels per day, more than the 600,000 bpd proposed last month, on growing fears that the virus outbreak will hit oil demand badly.

OPEC and its allies including Russia, a grouping known as OPEC+, have already been curbing oil output by 1.7 million bpd under a deal that runs to the end of March.

"Current prices do not work for most of the OPEC+ group as they stand and Russia is not as price agnostic as it endeavours to seem," said Helima Croft global head of commodity strategy at RBC Capital Markets.

"We think Saudi Arabia will likely be able to rally the rest of the producers for a cut of at least 1+ million bpd."

Coronavirus outbreak delays job offers in Asia's biggest financial hubs

Recruiting has become less of a priority as firms including DBS Group Holdings Ltd. have highlighted the revenue impact of worsening business conditions.

Financial firms operating in Singapore and Hong Kong are delaying hiring as the coronavirus outbreak disrupts their businesses.

Both domestic and foreign institutions have slowed recruitment, according to headhunters in the financial hubs. They’ve been impacted by quarantines, restrictions on travel to and from China, remote working arrangements and decisions not to conduct face-to-face interviews.

It’s another aspect of the fallout from the virus, which has also caused factory closures, disrupted supply chains and initiated the world’s largest work-from-home experiment. Recruiting has become less of a priority as firms including DBS Group Holdings Ltd. have highlighted the revenue impact of worsening business conditions.

“Everybody is distracted,” said Gurj Sandhu, a managing director at Morgan McKinley Group Ltd. in Singapore. Hiring is falling down the “pecking order,” he said, while adding that nobody is canceling roles yet.

Bloomberg spoke with six recruitment firms, all of which confirmed the slowdown. Hiring processes and relocation plans are taking longer at most companies because of logistical difficulties. While some financial firms are conducting interviews by video conference or phone, closing the deal is more problematic, especially at investment banks and wealth-management units.

Bankers are “big-ticket items,” said Hubert Tam, a managing partner at Sirius Partners Ltd. in Hong Kong. Private banks and investment banks are holding off on hiring until they can meet candidates in person, “even if they performed well last year,” he said.

What’s more, many private bankers covering China would have to travel to the country to meet clients and “get their blessings” before they move banks, according to Amod Jain, a Morgan McKinley consultant in Singapore. “Not everything can be done by phone.”

India 43rd most competitive economy, Singapore tops the list: Report

Singapore has moved up to the top, from the third position last year, while the US has slipped to the third place in the 2019 edition of the IMD World Competitiveness Rankings.

India has moved up one place to rank 43rd most competitive economy in the world on the back of its robust economic growth, a large labour force and its huge market size, while Singapore has toppled the US to grab the top position, a global study showed.

Singapore has moved up to the top, from the third position last year, while the US has slipped to the third place in the 2019 edition of the IMD World Competitiveness Rankings. Hong Kong SAR has held onto its second place, helped by a benign tax and business policy environment and access to business finance.

Economists regard competitiveness as vital for the long-term health of a country's economy as it empowers businesses to achieve sustainable growth, generates jobs and, ultimately, enhance the welfare of citizens.

The IMD World Competitiveness Rankings, established in 1989, incorporate 235 indicators from each of the 63 ranked economies to evaluate their ability to foster an environment where enterprises can achieve sustainable growth, generate jobs and increase welfare for its citizens.

The IMD Business School said it takes into account a wide range of statistics such as unemployment, GDP and government spending on health and education, as well as data from an executive opinion survey covering topics such as social cohesion, globalisation and corruption.

The study said the Asia-Pacific region has emerged as a global beacon with 11 out of 14 economies either improving or holding their ground.

India's ranking has improved by one place in past one year to 43rd, driven by a robust rate of growth in real GDP, improvements in business legislation and an increase in public expenditure on education.

Business Standard

Singapore home prices fall most since 2016, luxury hardest hit

The private residential property index dropped 0.6% from 2018's last quarter, preliminary data from the Urban Redevelopment Authority showed on Monday.

Singapore’s private residential prices fell the most in two-and-a-half years in the first quarter, with values of high-end homes have the biggest decline in a decade, following last year’s surprise tightening of property market curbs.

The private residential property index dropped 0.6 per cent from 2018’s last quarter, preliminary data from the Urban Redevelopment Authority showed on Monday.

It was a second consecutive fall after a 0.1 decrease in October-December.

Monday’s data showed that prices in Singapore’s prime districts fell 2.9 per cent - the biggest fall since the second quarter of 2009, according to consultancy Cushman and Wakefield. Prime districts include luxury homes in the Orchard Road shopping area and Sentosa, an island resort.

“Multiple dosage of cooling measures coupled with stronger headwinds in the macroeconomic condition has started to weigh down buying demand,” said Christine Li, Singapore head of research for the consultancy.

Li forecast overall prices to be flat this year.

To counter what they said was “excessive exuberance” in the city-state’s property market after a spike in prices last year, authorities in July slapped higher stamp duties on property purchases for individual home buyers and tightened housing loan limits.

They also unveiled stricter guidelines on the maximum number of units in new blocks of private flats and condominiums to tackle the development of so-called “shoebox units”.

Business Standard

Chanda Kochhar seeks more time to appear before Sebi for a personal hearing

The coming Tuesday had been set as a date for personal hearing, cross-questioning and recording of her statement.

Business Standard : ICICI Bank’s former managing director and chief executive officer (MD and CEO), Chanda Kochhar, has sought more time to appear before the Securities and Exchange Board of India (Sebi) for a personal hearing, said a source in the know.

Kochhar has been issued a showcause notice by the regulator for alleged violation of the code of conduct. The issue is not disclosing a potential conflict of interest arising out of business dealings between ICICI Bank when she was its MD & CEO, Videocon Industries and her husband, Deepak Kochhar’s Nupower Renewables.

The coming Tuesday had been set as a date for personal hearing, cross-questioning and recording of her statement. “(Her) representative has informed Sebi’s adjudicating officer, who is probing the case, that she would not be able to keep Tuesday’s date and has sought a month’s time,” said a source. Adding: “Regulatory officials are mulling the options and studying the reasons cited for the extension by Kochhar.”

ALSO READ: From bad loans to asset quality, how ICICI Bank fared under Chanda Kochhar

A text message sent to Kochhar on Friday did not elicit a response. Kochhar had, on October 4, opted for early retirement from the bank. The resignation offer was accepted with immediate effect and Sandeep Bakhshi named as her successor the same day. Earlier, on June 18, Kochhar was asked to go on leave until an independent enquiry to probe this and related cases of impropriety were concluded. Bakhshi was appointed chief operating officer and named the interim head. Kochhar's exit came before the completion of the four months of leave she had been granted.

According to the rules, a bank cannot operate with an interim chief for more than four months. For Kochhar to have returned as chief, the probe would had to be completed before October 17. It appears the enquiry, by former Supreme Court judge B N Srikrishna, would take one more month.

According to the sources, Kochhar and her legal representative are awaiting the Srikrishna panel's report before the Sebi appearance.

Srikrishna is looking into all the allegations against Kochhar, including the assets she owned and the links between assets acquired and the loan being sanctioned to Videocon Industries. The panel is also likely to call Kochhar to hear her, said another person.

Sebi had issued its showcause notice on May 23, based on a preliminary enquiry. It has said there was potential conflict of interest in the transactions between ICICI Bank and the Videocon group. By not disclosing the details of her husband's dealings with Videocon, she had not complied with the provisions of the listing agreement (with the stock exchanges). Therefore, proceedings were initiated by Sebi against both the bank and her.

Kochhar had replied to Sebi, debying all the charges on breach of the code of conduct. She had claimed all the requisite disclosures were adhered to by her, in line with the code of conduct of the bank, mandated for the top management and senior employees.

Modi gets ceremonial welcome in Singapore, discusses bilateral ties

Modi is in Singapore on the last leg of his three-nation tour, He earlier visited Indonesia and Malaysia.

Prime Minister Narendra Modi  met and discussed bilateral ties with his Singaporean counterpart Lee Hsien Loong on Friday.

Modi, who arrived in Singapore on Thursday on a three-day visit, also called on Singapore President Halimah Yacob.


After his arrival at the presidential palace Istana, he was accorded a ceremonial welcome.


"Prime Minister Modi was accorded a ceremonial welcome on his arrival at Istana - Presidential Palace of Singapore. Millennia old ties now powered by partnership in innovation and technology," said Raveesh Kumar, Spokesperson of the Ministry of External Affairs.


Modi received a 'guard of honour' at the palace.


During his talks with Singaporean leaders, Modi discussed ways to further strengthen bilateral ties.



Modi is in Singapore on the last leg of his three-nation tour. He earlier visited Indonesia and Malaysia.