More precious metal investment demand
Portfolio February 19th, 2010
Mitsubishi Financial to issue yuan bonds
Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, plans to become the first foreign company issuing yuan-denominated bonds to be sold in China to seek new investors.
Noriyuki Tanaka, manager of corporate planning division, explains subsidiary Bank of Tokyo-Mitsubishi UFJ (China) Ltd. won permission to sell bonds. Also plans to explore funding to 1 billion yuan (U.S. $ 146 million) of securities 2-year term.
“We’re hoping to get a warm reception from investors in China. Yuan bond issuance is the form of diversification of funding sources and stability in the medium term,” Tanaka said by phone from Shanghai today.
Head of the China Securities Regulatory Commission affirmed the Shang Fulin China will develop corporate bond markets and encourage banks to trade debt securities. Previously, the National Association of Financial Market Institutional Investors explain Asian companies were allowed to start selling bonds.
China bonds jumped to 1.96 trillion yuan last year, from 981 billion yuan over the government’s efforts to reduce dependence on bank credit companies.
John Cheng, managing director of investment banking China International Capital Corp., argues that the first group of buyers in China’s bond market could come from blue-chip companies who want to expand.
“Sales of yuan bonds that can be regarded as a pilot project. More importantly, who would buy. Because the insurance and fund managers can not buy because they have to get permission first. The possibility that banks could only buy,” said Qu Qing, an analyst with fixed -income Shenyin Wanguo Securities Co. in Shanghai responded to the plan of the Bank of Tokyo-Mitsubishi.
Gold prices pushed the U.S. dollar depreciation
Gold Investing February 19th, 2010
Contract price of gold climbed to its highest level in a week as the dollar depreciation that drive demand for the precious metal as an alternative investment.
U.S. dollar slumped to the lowest point this week against six major currencies of the world. Gold bullion, which is usually purchased traders to hedge from inflation, moved up if the dollar weakens.
Precious metal prices, which rose 25% this year, touching a record level of U.S. $ 1227.50 per ounce at the beginning of this month, while the dollar plunged more than 4%.
“The sentiment is still strong, while the greenback continued to get pressure,” said James Moore, analyst at TheBullionDesk.com in London.
The price of gold futures for February delivery rose U.S. $ 10.80 (1%) to U.S. $ 1104.80 per ounce on the Comex unit, the New York Mercantile Exchange, the biggest increase since December 16.
Precious metals price rally this year’s record. Growth in the United States is weakened during the recession the longest since World War II to encourage demand for gold as an investment alternative.
China steel company profits predicted to fall 40%
Economy February 19th, 2010
Profits of steel companies in China is estimated to drop to 40% to 50 billion yuan (U.S. $ 7.3 billion) this year.
According to Qi Xiangdong, deputy secretary-general of China Iron & Steel Association was quoted in the China Securities Journal today, most steel companies are still suffering from losses in November.
This, he added, due to high costs and low selling prices despite a high turnover rate.
Qi added profits for steel companies on 72 November to reach 7.3 billion yuan and the results expected in December for less than the level that
Indonesia became the largest Hino production base outside Japan.
Company Info February 19th, 2010
Hino Motors Ltd. said Indonesia became the largest production base Hino trucks and buses outside Japan, along with the expansion of factory production from 10,000 to 35,000 units per year.
Yoshio Shirai, President Director of Hino Motors Ltd., said the expansion of production capacity by PT Hino Motors Manufacturing Indonesia (HMMI) are expected to support the parent company’s business in Japan.
“Hino global production of 90,000 units per year and production of [Hino] in Indonesia, 10,000 units per year. The increase of this capacity increase the number of our employees to nearly 1,000 people, we expect sales of the Toyota Group and Dutro Dyna more,” he said in a speech inauguration of the expansion of the factory in Purwakarta, today.
Vice President inaugurates Boediono opportunity Hino plant capacity expansion is. Vice President was accompanied by Minister of Manpower and Transmigration Muhaimin Iskandar, Public Works Minister Djoko Kirmanto, Deputy Minister of Industry Alex Retraubun, and the ranks of Toyota and Hino officials in Japan.
Yoshio confirmed the company will continue to deliver products according to customers’ needs and have a reliable technology.
“Increased production of Hino expected to contribute to economic development and progress of the automotive industry in Indonesia,” he said.
On that occasion, Matsuhiro Sonoda, chairman of Toyota Motor Asia Pacific said that nearly all the countries affected by the economic recession so far, but rapid recovery steps taken by the government and Bank Indonesia.
“Good economic growth affect the automotive market is good. We are proud of and committed to the growth of Indonesia mempercpat investments, particularly the introduction of Toyota and Hino Dutro Dyna,” he said.
Matsuhiro hope Hino Dutro truck sales, and Toyota Dyna can reach 30,000 units. Indonesia became the production base and Dutro Dyna, with a market share of 26% for commercial cars.
Vice Governor of West Java, Dede Yusuf in his speech that his party welcomed the Hino plant expansion and is expected to support the improvement of the regional economy.
“The presence of the plant is expected to provide greater opportunities for skilled workers from the region and Purwakarta in West Java,” he said
Burj Dubai tallest building inaugurated today
Company Info February 19th, 2010
Burj Dubai, tallest building in the world who tilled by property giant Emaar company, plans to open today in the midst of world economic conditions are still in the recovery phase.
Building height is 800 meters altitude beat Taipei 101 Tower (508 meters), which holds the record for the tallest building in the world. This prestigious project was designed with a unique architecture, forming a needle and will be supplied with a variety of alternative energy.
However, the level of occupancy of the building’s office space is still on the level of 75% will be challenges for investors and building managers. Apartment prices in the Middle East that had soared in 2008 and then declined almost in half last year also indicates that the Middle East property market is still sluggish.
“Consumers are buying with the intention to rent will face a difficult time, because very few companies today can pay a premium for something fancy,” said Roy Cherry, an analyst at Shuaa Capital PSC, today.
Building the Burj Dubai skyscraper of 160 floors, with an area of 330,000 square meters, which was built with 31,400 tons of steel. Grandeur of this building can be seen from distances of up to 95 kilometers. The building is equipped with 57 elevators for residents of the building consisting of 1044 apartments, 49 floors of offices and hotels bearing the Giorgio Armani logo. Skyscrapers are a Y-shaped design, the design architect Adrian Smith.
For building designers and developers, the inauguration of this building marks a new chapter in the property industry and the world of architecture. Building height to more than 800 meters will encourage other developers to create giant building higher up to 1 Km.
