ASIA NOW 2013 | Singapore “to Become New Switzerland”, as the biggest offshore wealth center

Singapore | The power of ASIA 2013

LUANDA - Wealth managers are stepping up their search for staff to expand in Asia as Singapore starts to overtake Switzerland as the world’s top private banking hub.

Singapore will overtake Switzerland as the biggest offshore wealth center in terms of assets under management by 2020, according to research firm WealthInsight.

A separate survey of advisers by PwC said Singapore would leapfrog Switzerland this year in terms of reputation. A broader survey by adviser Z/Yen in March named Hong Kong and Singapore as two of the world’s top four financial centers behind London and New York. Singapore was tipped for the top more frequently than any other city.

The business case for wealth management in Asia is clear: Singapore had the highest percentage of millionaire households in the world at the end of 2011, according to research from the Boston Consulting Group, and Hong Kong had the highest number of billionaires relative to the size of its population. While private wealth in the Asia-Pacific region ex-Japan increased by 10.7% to $23.7 trillion in 2011, private wealth declined in North America and Western Europe.

Advisers say Singapore’s low tax rate, stable currency, efficient corporate registration and clearly defined regulation have become more attractive than Switzerland.

Sebastian Dovey, managing partner of advisory firm Scorpio Partnership, said: “Whichever year you want to choose, Singapore is on a trajectory to get to the top.”

Chris Wheeler, senior analyst at Mediobanca Securities, said: “If you want to be anywhere in the international wealth advisory business, you need to be in Singapore.”

For advisers based in Switzerland, the move’s not a cheap one.

Mr. Dovey said the war for talent in Asia and real estate costs made Singapore one of the world’s most expensive places to set up a wealth advisory business. The ratio between costs and income in Europe averaged 73%: “But the ratio is 10 percentage points higher in Singapore,” he said.

An executive at a large wealth advisory firm said he knew of advisers “working at a loss in the hope of getting market share”.

Even so, BNP Paribas Wealth Management plans to add 200 private bankers in Asia over the next three to five years, the firm told Financial News, MoneyBeat’s sister journal. Rory Tapner, chief executive of private bank Coutts, part of the Royal Bank of Scotland RBS.LN -2.09%, said he wanted to double his client-facing staff in Asia in the next two or three years.

Swiss bank Julius Baer calls Asia its “second home market” after buying Merrill Lynch’s international wealth business. Chief executive Boris Collardi has said the deal doubles Julius Baer’s market share in north and south-east Asia and told a Chinese newspaper that the firm would more than double its staff in Asia by 2015.

First-quarter results from banks with large wealth businesses have illustrated how capital investment in Asia can pay off. Asia-Pacific flows were up 11% year-on-year at Swiss bankUBS UBSN.VX -2.28%, representing a third of the bank’s Sfr15bn ($16.05bn) in net new wealth assets. Inflows from clients in Europe were lower at just Sfr 1.1bn.

At Credit Suisse CSGN.VX -2.37%, assets under management for wealth clients in Asia were up 21% year-on-year, the strongest growth of any region.

And  banks on both sides of the Atlantic are pruning their wealth-management businesses: Morgan Stanley MS -1.26% last month sold its European arm to Credit Suisse, while Lloyds Banking Group LLOY.LN -0.88% is said to be considering selling some international wealth operations.

By Sarah Krouse and Mike Foster | Wsj

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PEACE & MONEY | Hydropower megaproject to dam River Congo - The $9-billion first phase

Africa's greatest river is about to be tamed. The River Congo is set to succumb to a series of giant hydroelectric dams with twice the generating capacity of the world's most powerful hydro-plant, the Three Gorges in China.

Last weekend, the Democratic Republic of the Congo (DRC) and South Africa announced a treaty to develop a giant hydroelectric project at Inga Falls, just downstream of the DRC's capital Kinshasa. The $9-billion first phase, with a capacity of 4800 megawatts (MW), will generate more power than Egypt's Aswan High Dam, currently Africa's largest-capacity hydropower dam.

Construction will start in late 2015. South Africa will take half of the power, with most of the rest earmarked for Congolese copper mines.

But the eventual aim, say the two governments, is to generate more than 40,000 MW by fulfilling the dreams of engineers since colonial times to harness the full power of the world's second largest river, after the Amazon. At Inga Falls, some 42,000 cubic metres of water rush down a series of giant rapids every second. With the right infrastructure, the force of the River Congo could supply electricity to Nigeria, Egypt and even Europe.

Good news, bad news

The project will not require a large reservoir to store the water needed to turn its turbines, because the river flows unceasingly at high volume. This is good news as it means that land will not need to be cleared and flooded.

The bad news, say opponents such as the California-based NGO International Rivers, is that few Congolese will get any electricity, since they are generally far from any power grids. "The majority of Africa's poor will remain without power, at a time when better solutions are available," says Rudo Sanyanga of International Rivers, who instead backs investing in local solar power and small-scale hydro schemes.

The World Bank said in a statement that the project would "catalyse large-scale benefits to improve access to infrastructure services" in Africa.

RISCO PRIVATIZAÕES EM ANGOLA | BPC e BCI, não estão a venda, afirma Henda Inglês

Luanda - O banco de poupança e crédito “BPC” e o banco de comércio e indústria “BCI”, não estão a venda, os dois bancos públicos vão continuar sob titularidade do estado, divulgou.

Em entrevista, o Presidente do conselho de administração do ISEP, instituto do sector empresarial público, Henda Inglês, deixou claro que não existe nenhuma decisão para a privatização do BPC e do BCI.

“Em princípio não há, ainda, nenhuma decisão relativamente a privatização destas duas instituições.

O que posso dizer é o seguinte: a decisão de privatizações tem de ter em conta os objectivos e o contexto” enfatizou.

Via|RNA/Agências

Angola’s economy outlook 2013 | Economic growth projected to reach 8.2%

Angola’s economy rebounded strongly after experiencing slow growth due to oil and financial crises. Economic growth is expected to reach 8.2% in 2013, and 7.8% in 2014, driven by the expansion in the oil and gas sector and a public expenditure programme designed to encourage economic diversification.

The government has embarked on ambitious reforms to improve governance but the business environment remains challenging in terms of institutions and infrastructure settings. Nonetheless, the creation of the Sovereign Wealth Fund (SWF) will help insulate the economy from volatile oil prices.

The country has made significant strides in a variety of human development indicators, including poverty, health and education but still ranks low in the Human Development Index (HDI) at 148th place out of 187 countries surveyed and continues to provide only a rudimentary social safety net in the form of fuel and utility subsidies.

 

Overview

The Angolan economy rebounded strongly after several years of low growth attributable to the lingering effects of the global financial crisis. Real gross domestic product (GDP) grew at an estimated rate of 7.9% in 2012 (up from 3.9% in 2011) on account of the strong performance of the energy, transportation and construction sectors. The outlook for 2013 and 2014 remains positive, with economic growth projected to reach 8.2% and 7.8%, respectively. This will be driven by a combination of continued expansion in the oil and gas sector and a public expenditure programme designed to encourage economic diversification.

The implementation of the 2009-12 Stand-By Arrangement (SBA) programme of the International Monetary Fund (IMF) helped the country to regain macroeconomic stability, achieve an improved fiscal position, more comfortable level of international reserves, a stable exchange rate, and lower inflation. Furthermore, large domestic arrears were settled, and progress was made in strengthening fiscal transparency and accountability. However, the country continues to face massive developmental policy challenges, including the reduction of the dependency on oil, the diversification of the economy, the rebuilding of the economic and social infrastructure, the improvement of the institutional capacity, governance, public financial management systems, human development and living conditions of the population. These factors are constraining the pace of diversification of the economy and preventing small- and medium-sized enterprise (SME) development and job creation. Unemployment remains significant at about 25%, and the incidence of poverty remains high at 36.6% of the population.

Much of the country’s growth over the past decade can be directly attributed to the exploration of natural resources. Oil still accounts for nearly 80% of government revenue, 90% of exports and 47% of the country’s GDP. This makes the economy heavily dependent on oil revenues and vulnerable to oil price shocks. In an attempt to further diversify the economy, a 5 billion US dollars (USD) Sovereign Wealth Fund (Fundo Soberano de Angola) was created in October 2012. The fund was endorsed by the IMF, which had long advocated such an instrument to help insulate the economy from volatile oil prices. Nonetheless, the main challenge rests on the government’s ability to ensure transparency, accountability and equitable distribution of the country’s natural resource earnings. Moreover, as Angola continues to access non-concessional financing to meet its development needs and expands the exploration of its natural resources, the government will need to guarantee the preservation of the country’s debt sustainability, while ensuring greater transparency and accountability in the management of oil revenues.

Figure 1: Real GDP growth 2013 (South)

Real GDP growth (%)Southern Africa - Real GDP growth (%)Africa - Real GDP growth (%)20042005200620072008200920102011201220132014-5%0%5%10%15%20%25%Real GDP Growth (%)

Figures for 2012 are estimates; for 2013 and later are projections.

http://dx.doi.org/10.1787/888932804947

Table 1: Macroeconomic indicators 2013

	2011	2012	2013	2014
Real GDP growth	3.9	7.9	8.2	7.8
Real GDP per capita growth	1.1	5.2	5.5	5.1
CPI inflation	13.5	10.3	8.7	9.3
Budget balance % GDP	10.2	7.8	4.8	3.5
Current account % GDP	9.6	8.2	8.1	7.6

Figures for 2012 are estimates; for 2013 and later are projections.

ANGELINA JOLIE | Senza seno, dopo la mastectomia, ecco il quadro provocazione

Il gesto dell'attrice Angelina Jolie, che ha deciso di farsi asportare entrambi i seni per prevenire il cancro, ha ispirato l'artista svedese Johan Andersson che ha deciso di dedicarle un dipinto che la ritrae nuda, senza seno. Celebre per aver dipinto il volto di Amy Winehouse dopo la sua scomparsa, Andersson è il più giovane artista esposto alla National Portrait Gallery di Londra. "Quando avevo 15 anni mia madre ha avuto una grave forma di cancro al seno", ha spiegato Andersson al New York Daily News, chiarendo tuttavia che "è stata abbastanza fortunata da non dover sottoporsi a mastectomia. "La recente notizia su Angelina ha generato in me un'ansia che mi ha spinto a dipingere questo ritratto", ha aggiunto. Il ricavato della vendita dell'opera, valutata circa 22.000 dollari, andrà a un'organizzazione benefica, la Falling Whistles, impegnata nel portare la pace in Congo

SE L’AMERICA FALLISCE | Rivista “Newsweek” va in crisi anche la versione digitale – la testata in vendita

ROMA - Certe notizie sono tristi, sempre e comunque. Sono venuto a conoscenza dell’ennesimo fallimento di una iniziativa giornalistica che ha fatto la storia della “giornalismo” americano. Considerando che, il giornalismo americano ha costituito nel tempo un modello da “copiare”, la morte di chi lo produceva lascia molto a desiderare.

Un sottomarino che scende nel fondo del mare. La copertina animata, che lo scorso gennaio ha inaugurato l’edizione digitale di «Newsweek» per il tablet, non ha portato fortuna allo storico settimanale americano. Neppure cinque mesi dopo aver detto addio alle copie cartacee (sopra, l’ultimo numero), infatti, la direttrice Tina Brown e Baba Shetty, l’amministratore delegato della società cui fa capo «Newsweek», confermano le indiscrezioni secondo cui si starebbe valutando di vendere la testata.

Ufficialmente l’operazione sarebbe dovuta alla volontà di puntare solo su «The Daily Beast, l’altro sito del gruppo.

I numeri però parlano da soli. Il nuovo «Newsweek»digitale si sostiene conabbonamenti a pagamento ma, secondo la rivista «Variety», nei primi tre mesi del 2013 ne sono stati sottoscritti solo 470 mila, contro il milione e mezzo dell’ultimo trimestre del 2012, quando esisteva ancora l’edizione cartacea. La previsione è che continueranno a calare nel corso dell’anno. Giù anche gli utenti unici online: dai 2,9 milioni di gennaio agli 1,9 milioni di aprile.

Il proprietario Barry Diller lo aveva ammesso un mese fa in un’intervista a Bloomberg Tv: «Non nutro grandi speranze, acquistare “Newsweek” è stato un errore».

E’ finita un’epoca per l’America.