Daily Briefing: Singapore economy to slow down growth in Q2 amidst trade risks; Smaller firms could pay more to roll over borrowings

And SIA's Indian arm bought 19 jets for US$3.1b.

From Bloomberg:

Smaller firms in Singapore may need to pay more to roll over borrowings in the local bond market ahead of unprecedented maturities as the wealthy investors who constitute a key buyer base get cold feet.

“Recent defaults along with rising borrowing costs for private banking investors have hurt demand, according to Eastspring Investments portfolio manager Danny Tan, who helps manage the Singapore Select Bond Fund. The fund had S$854 million ($628 million) of assets under management as of May 31.

Fresh signs have emerged of stress among smaller borrowers in the local debt market this year. CW Group Holdings Ltd., a precision machine tool maker, defaulted on a bond in June. Hyflux Ltd., a water treatment and power firm, is pursuing a debt restructuring after defaulting on its perpetual securities.”

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From Reuters:

Singapore’s economy may face slower growth in Q2 2018 due to lost in momentum of the manufacturing sector and the growing risks in global trade due to tensions from the US-China trade wars.

“From a year earlier, advance gross domestic product (GDP) was forecast to rise 4.0 percent in April-June, according to the median estimate of 12 economists surveyed by Reuters, slower than the 4.4 percent growth posted for January-March.

“The modest easing is nothing more than a normalization process amid the peaking of the electronics cycle and higher interest rates,” said Irvin Seah, an economist at DBS Bank.”

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From Bloomberg:

Singapore Airlines’ Indian arm Vistara will buy 19 jets for US$3.1b to launch its international flights and to expand local operations.

“Vistara, as the airline is known, will buy 13 of the A320neo and A321neo jets that have a list price starting at about $111 million each and six Boeing 787-9 Dreamliners at about $282 million apiece. The combined order is valued at $3.1 billion, excluding customary discounts, the carrier said in a statement Wednesday.

Additionally, Vistara will be renting 37 new A320neo family aircraft from leasing companies, according to its statement. The airline currently has a fleet of 21 single-aisle Airbus planes.

Read more here.

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