Published on 12/08/2017
Brent crude oil for February delivery gained nearly $1 to settle above $62/bbl on the London market Dec. 7. The benchmark continued gaining on Dec. 8.
Analysts credited both Brent and US benchmark oil price support to the release of official Chinese data that showed crude imports rose in November to more than 9 million b/d.
Chinese crude imports for October reached only 7.3 million b/d. The Chinese imports for November represented the second-highest monthly figure on record with China’s customs officials.
Crude imports by China rose 12% year-over-year during the first 11 months of 2017, Commerzbank analysts said.
“Consequently, China will supersede US as the world’s largest crude importer this year,” Commerzbank analysts wrote in a Dec. 8 research note.
Giovanni Staunovo, UBS Wealth Management analyst, said crude prices, which fell to 3-week lows on Dec. 6, made a quick rebound on “positive equity markets around the world.”
Geopolitical tensions in the Middle East—including US President Donald Trump’s announcement to recognize Jerusalem as the official capital of Israel—also supported oil prices, analysts said.
Some analysts suggested the death of former Yemeni President Ali Abdullah Saleh also contributed to higher crude prices Dec. 6-7.
Energy prices
The January 2018 light, sweet crude contract on the New York Mercantile Exchange gained 73¢ on Dec. 7 to $56.69/bbl. The February 2018 contract rose 72¢ to $56.75/bbl.
The NYMEX natural gas price for January delivery fell 16¢ to a rounded $2.76/MMbtu. The Henry Hub cash gas price was $2.81/MMbtu, down 9¢.
Heating oil for January rose 3.6¢ to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for January increased nearly 4¢ to a rounded $1.70/gal.
The Brent crude contract for February 2018 on London’s ICE climbed 98¢ to $62.20/bbl. The March 2018 contract was up 92¢ to $61.95/bbl.
The gas oil contract for December was $549/tonne, up $3.25.
The price of the Organization of Petroleum Exporting Countries’ basket of crudes was unavailable.
Contact Paula Dittrick at paulad@ogjonline.com.
Source: http://www.ogj.com/articles/2017/12/market-watch-us-brent-oil-prices-rise-on-geopolitical-tensions.html
Read MoreVIENNA (REUTERS) – Opec and non-Opec producers led by Russia agreed on Thursday (Nov 30) to extend oil output cuts until the end of 2018 as they try to finish clearing a global glut of crude while signalling a possible early exit from the deal if the market overheats.
Russia, which this year reduced production significantly with Opec for the first time, has been pushing for a clear message on how to exit the cuts so the market does not flip into a deficit too soon, prices do not rally too fast and rival US shale firms do not boost output further.
Russia needs much lower oil prices to balance its budget than Opec’s leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude.
The producers’ current deal, under which they are cutting supply by about 1.8 million barrels per day in an effort to boost oil prices, expires in March.
Iranian Oil Minister Bijan Zanganeh told reporters the Organisation of Petroleum Exporting Countries had agreed to extend the cuts by nine months until the end of 2018, as largely anticipated by the market.
Opec also decided to cap the output of Nigeria and Libya at 2017 levels without deciding on figures, he added. Both countries have been previously exempt from cuts due to unrest and lower-than-normal production.
The Opec meeting was followed by talks with the non-Opec producers, which started at 1600 GMT (midnight on Friday, Singapore time).
As of 1710 GMT, those talks were continuing but a delegate told Reuters non-Opec had agreed to extend the cuts in tandem with Opec until the end of 2018.
Before the meetings, Saudi Energy Minister Khalid al-Falih said it was premature to talk about exiting the cuts at least for a couple of quarters and added that Opec would examine progress at its next regular meeting in June.
“When we get to an exit, we are going to do it very gradually… to make sure we don’t shock the market,” he said.
The Iraqi, Iranian and Angolan oil ministers also said before Thursday’s meetings that a review of the deal was possible in June in case the market became too tight.
Zanganeh said later no such debate had taken place at the Opec meeting. However, a draft Opec communique said the duration would be reviewed in June based on fundamentals.
“We will review the market situation and needs, and whether to keep the same level of cut or gradually decrease or increase it,” one delegate said.
International benchmark Brent crude rose around 0.5 per cent on Thursday to trade above US$63 a barrel.
GLUT OR SHORTAGE?
With oil prices rising above US$60, Russia has expressed concerns that an extension for the whole of 2018 could prompt a spike in crude production in the United States, which is not participating in the deal.
“If producers in the US increase their rig count over the next few months due to higher prices then I expect another price collapse by the end of 2018,” said Scott Sheffield, executive chairman of Pioneer Natural Resources, one of the largest producers in the Permian Basin of Texas and New Mexico, the largest US oilfield.
“I hope that all US shale companies will maintain their current rig counts and use all excess cash flow to increase dividends back to their shareholders,” he told Reuters.
Gary Ross, a veteran Opec watcher and founder of Pira consultancy, said the market could surprise on the upside with Brent prices rising to US$70 a barrel if there was a major supply disruption.
“Everywhere you look, there is an ever-present risk to supply,” Ross said.
“In Iraq’s Kurdistan there is a major risk to oil exports because of tensions with Baghdad, in Libya militias are still fighting, in Nigeria the risks of disruptions are significant, Venezuela is on the verge of default, Iran could again face US financial sanctions and even in Saudi Arabia political risk is on the rise,” Ross added.
The production cuts have been in place since the start of 2017 and helped halve an excess of global oil stocks although those remain at 140 million barrels above the five-year average, according to Opec.
Russia has signalled it wants to understand better how producers will exit from the cuts as it needs to provide guidance to its private and state energy companies.
“We need to work out a strategy for 2018,” Russian Energy Minister Alexander Novak said.
Source: http://www.straitstimes.com/business/companies-markets/opec-russia-agree-oil-cut-extension-to-end-of-2018
Published: 15:34 December 3, 2017
Dubai: The UAE’s banking sector outlook for 2018 remain solid in the context of stable operating environment in the country, according Fitch Ratings.
“The UAE operating environment remained solid in 2017, and this is expected to continue in 2018, due to its greater diversification [particularly Dubai] than GCC peers,” said Redmond Ramsdale, an analyst with Fitch Ratings.
The UAE’s GDP growth continues to be led by the non-oil sectors. There have been some project delays or cancellations due to the lower oil prices, mainly putting pressure on Abu Dhabi banks, but Fitch believes this to be manageable. The UAE’s real GDP growth is likely to be 3.4 per cent in 2018, up from 1.3 per cent in 2017.
The economy’s continued robustness has resulted in overall stable asset-quality metrics for banks in 2017. Deterioration in SME [small and medium enterprises] portfolios has been offset by some further recovery in historic corporate impaired loans.
“Loan impairment charges increased in 2015 and 2016 as a result of the SME issues, but started to reduce in the first half of 2017. This should improve further for 2017 and 2018. Nevertheless, we believe asset-quality metrics are generally at their optimum range,” said Ramsdale.
Loan-loss reserve coverage has been increasing in all banks over the past three years and is now stable. It should be sufficient for IFRS 9 requirements. A greater decrease in real-estate prices and unsuccessful repayment/refinancing of Dubai’s restructured debt could lead to re-emergence of asset-quality problems in the UAE.
Ultimately, the success of the various plans to restructure these loans will depend on developments in the UAE economy and realisation of the underlying collateral. We expect bank loan growth to average 5 per cent for 2017, down from 7 per cent in 2016.
Growth is still strong across the Islamic banks as there has been some migration to Sharia-compliant banking facilities now that products are broadly equivalent, and banks’ ability to structure new Sharia compliant products has increased.
Lower oil price
Leading UAE banks have reported robust improvement in performance with overall profitability and return on equity (RoE) higher in the third quarter of 2017, according to an analysis of key performance metrics by global professional services firm Alvarez & Marsal (A&M).
Almost all of the metrics applied by A&M in their analysis have risen quarter on quarter, suggesting that banks have successfully adapted to the market conditions created by a lower oil price environment, growing their loan books and are continuing to manage their costs sensibly.
The UAE Banking Pulse report analysed quarterly data of the 10 largest listed UAE banks in the third quarter of 2017 against the second quarter of 2017, and identifies prevailing trends throughout the intervening period.
: The housekeeping measures which we saw many banks implement last year were on the back of fears that the operating environment would worsen significantly, but it has not turned out to be as bad as was expected,” said Dr Saeeda Jaffar, a managing director of A&M.
Rating agency Fitch expects loan growth to remain in mid-single digits in 2018. UAE banks remain profitable. Cost of funding improved in 2017 with an improvement in liquidity conditions and this is expected to continue. Pre-impairment operating profits are able to absorb high loan impairment charges.
“We do not expect significant deterioration in profitability metrics for 2017 and in 2018 despite lower GDP growth and overall increased funding costs, as banks have been successful in repricing their books. Interest rate rises should also continue to benefit as banks maintain high levels of non-remunerated deposits,” said Andrew Parkinson, an analyst at Fitch.
Core Capital ratios were a strong average of 14 per cent at end of first half 2017. Strong internal capital generation capacity and solid liquidity buffers provide a solid cushion against asset-quality deterioration. Some banks have accessed the international debt capital markets, raising not just senior debt but also subordinated and hybrid Tier 1 capital.
Strong funding and liquidity
Analysts expect capital levels to remain unchanged in 2018, due to lower loan growth. All banks operate on the standardised approach in accordance with Basel II. The central bank has not approved a move to the internal ratings-based approach for any bank, even though most now have developed the systems for this, and this is unlikely to change in the short term.
Analyst say funding and liquidity is strong across UAE banks. Deposits have proved behaviourally stable, although contractually short-term. Liquidity pressures have improved, with Abu Dhabi sovereign issuance and subsequent capital injection into the Abu Dhabi banks, but slower deposit growth and higher, albeit improved, pricing is likely to remain. Customer deposits form the bulk of funding requirements.
The average loans/deposits ratio is healthy, at about 95 per cent at end of first half 2017, decreasing from 98 per cent at end-2016 due to lower loan growth. This ratio is expected to reduce slightly further for in 2017 and 2018 but remain above 90 per cent. Most banks have a large stock of liquid assets, which provides a good liquidity buffer.
Source: http://gulfnews.com/business/sectors/banking/strong-operating-environment-to-support-uae-banking-sector-1.2134438
Read More
Published: 12:13 December 10, 2017
The rapid advancement in innovation is transforming the financial services industry, especially the banks, as technology has become an integral part of the business strategy — from initially being just an enabler to now actually streamlining operating processes. Within the technological innovation, the emergence of financial technologies, also known as FinTech, has been a major game changer and taken the industry by storm, which may not have been ready for such a transformational change. The increasing popularity and acceptance of FinTech companies by the end users within the financial service industry began to challenge the traditional models followed by the banks over the years. As a result, banks around the globe began to realise that the role of technology is fundamentally changing, and it would be prudent to quickly adopt such technologies into their own business models. Thus, a new era of revolution begins within the banking sector, and significant resources are now being deployed to embrace this fundamental change.
FinTech has started reshaping the financial services industry globally and within it, the banking sector. A similar trend is being witnessed in the Middle East and North Africa region (Mena), where the pace of FinTech innovation, especially in the Gulf Cooperation Council (GCC), has been rapid over the past couple of years, primarily backed by investors who continue to pour money into regional FinTech firms. The Middle East has amassed more than $100 million (Dh367 million) in FinTech start-up funding in the past ten years, with 105 FinTech start-ups launching in 2016, with hopes to raise $50 million in funding by the end of 2017. However, this has not hindered the emergence of new players with disruptive technologies as the scope of services and opportunities continue to expand with the changing landscape of the financial services industry. Resultantly, the banking sector in the GCC and the wider Mena started to realise the extent of the threats and opportunities that FinTech possess, and have thus started adopting measures to adjust to the new realities in the current environment. Further, digital transformation has opened new revenue streams and optimised cost, with FinTech innovation helping in the launching of new products and services for the banks.
Within the FinTech space, the collaborative approach is gaining significant traction as traditional financial institutions harness these technologies to complement their existing business models. However, the collaboration between the banks and FinTech players can be harmonised only through a robust regulatory framework, which currently remains at an incubation stage in many of the region’s economies. Although at a relatively mezzanine level, the regional governments, especially the UAE, have already started testing the waters for a collaborative approach, in addition to bringing about a higher degree of financial stability in the market. For instance, FinTech Hive in the Dubai International Financial Centre (DIFC), and the regulatory sandboxes set up by the Dubai Financial Services Authority (DFSA), with similar initiatives in Abu Dhabi and Bahrain, are prime examples of how regulators are approaching the FinTech industry. Recently, the DFSA launched its regulatory framework for loan and investment-based crowdfunding platforms, and licensed Beehive for peer-to-peer lending and Eureeca for equity-based crowdfunding. (Eureeca is the first crowd-investing platform connecting online investors to businesses raising funds through crowdfunding.) In January, the Central Bank of UAE issued regulations relating to stored-value and electronic payments, payment operations, netting and settlement systems in order to facilitate robust adoption of digital payments across the UAE in a secure manner.
The FinTech revolution has also compelled the regional financial institutions, particularly the banks, to proactively accelerate the pace at which they adopt the technology to reduce costs and improve customer experience. This digital transformation is perceived as a reinvention strategy, rather than incremental enhancement to their existing offerings.
Banks in the UAE remain the trendsetters, although other GCC countries are not lagging far behind, with several banks in the region embracing FinTech in many different ways. While banks such as Emirates NBD, Emirates Islamic Bank and First Gulf Bank launched FinTech-related competitions to build and develop banking and financial solutions to improve the banking experience of consumers; others such as Bank Al Etihad, the Arab Bank, and Bank Al Ahli, have approached FinTech favourably by underwriting substantial amounts of capital in the FinTech start-up Liwwa’s platform as institutional investors. However, financial intermediaries such as PayPal are also increasingly rivalling the dominance of banks in MENA.
Emirates NBD leads the region as a digital innovator through its best-in-class online and mobile banking services. Further, the Emirates NBD Future Lab was set up as part of the bank’s digital strategy to foster innovation and accelerate development of next generation digital services. Earlier, the bank had also invited global FinTech firms to assist them in key areas such as customer acquisition and on-boarding, loyalty and engagement, SME banking, Islamic banking, etc. Another example is Mashreq Bank, which launched one of the region’s first full service digital branchless bank, Mashreq Neo, as well as a new digital mobile wallet service called Mashreq Pay that can be used to make purchases around the world. Moreover, the bank has also started to use robotics to manage open account trade payments which will eventually lead to staff cuts, while it plans to halve the number of branches over the next three years. Furthermore, banking on the FinTech collaborative opportunity, UAE-based RAKBank teamed up with C3, a prepaid card service provider, to launch a payroll card, for both banking and non-banking individuals, which offers low-income workers better remittance rates when sending money home. Similarly, following the footsteps of National Bank of Abu Dhabi, which became the first bank in Mena to introduce real-time, cross-border payments on blockchain through a partnership with US-based Ripple; RAKBank also recently entered into a partnership with Ripple to leverage on its global blockchain network (RippleNet) to power cross border payments.
Banks have been adopting new technologies at various levels, but the transformation has been rather gradual for several banks in the region. It is important for them to understand that technological innovation will continue to remain an ongoing process and FinTech companies will keep innovating new solutions that might bring about new changes within the financial service industry. Hence, regional banks will have to develop an ecosystem that will continue to track the latest changes and help in quickly adopting the latest technologies to capitalise on the changing opportunities within the sector.
—Shailesh Dash is an active Entrepreneur & Fund Manager and has promoted several Financial Services, Healthcare, Retail and Logistics companies
SYDNEY (BLOOMBERG) – It has been a borrower’s market for a long time, in Asian syndicated loans as in the rest of the dollar universe. But Asia-Pacific lenders are facing increasing funding pressures, and a handful are aiming to pass those costs along – in another sign that the beginning of the end of ultra-easy money may be coming.
Half of the 50 banks in a Bloomberg News survey have experienced an increase in funding cost of as much as 20 basis points over the past few months.
“Banks across the Asia Pacific in many cases will be challenged to maintain momentum on net interest margin primarily from a competitive standpoint in 2018,” said Gavin Gunning, senior director at S&P Global Ratings. “The banking sector regionally is becoming more competitive and in general that means that there are more pressure in terms of banks’ funding cost.”
While loan pricing is not likely to rise in the near-term, there are signs it could be bottoming: 26 per cent of respondents said they need higher rates on loan deals thanks to funding pressures. With strong growth in the Asia-Pacific region, and signs of a pick-up in global capital spending, the environment could turn more hospitable for lenders. Eighteen per cent in the survey said they have turned down deals that did not pay enough.
Syndicated loan volumes in the region excluding Japan have dropped 12 per cent from a year ago, to US$392.6 billion so far in 2017. Fewer mergers and acquisitions and a booming market for sales of dollar bonds contributed to the drop. Average spreads on US dollar-denominated financial bonds in Asia excluding Japan have risen 12 basis points so far this year – while small, still on track for the biggest annual gain since 2011, according to JPMorgan indexes. Margins on three-year dollar loans have averaged 210 basis points in 2017, the lowest for any year since 2010, according to data compiled by Bloomberg.
Fitch Ratings also cited higher funding costs as a pressure for banks in its 2018 outlook for the industry, published last month. Competition and the implementation of new accounting standards known as IFRS-9 pose additional challenges, the company wrote.
Bloomberg’s survey incorporated 50 interviews with loan bankers from Asia Pacific branches across 39 banks by phone or email in October and November. Twenty-three respondents were from Taiwanese banks, 13 from Chinese or Hong Kong banks, seven from European banks, three from South Korean banks, three from South-east Asian banks and one Australian.
Source: http://www.straitstimes.com/business/banking/asian-banks-see-funding-costs-rise-making-2018-challenging
Published: 16:50 December 10, 2017
Abu Dhabi: Oil prices are expected to stick to current levels and eventually see a higher uptick later in 2018 due to greater likelihood for more oil to be taken out of the market following Opec output cut agreement, according to analysts.
Oil producing counties are cutting production by 1.8 million barrels per day to help lower global oil inventories and support oil prices. The original deal was to expire in March but it has been extended until the end of 2018.
Brent crude was trading at $63.40 (Dh232.68) per barrel, up by 1.93 per cent and West Texas Intermediate is at $57.36 per barrel, up by 1.18 per cent when markets closed on Friday.
“As Opec decided to extend output cuts, there is greater likelihood for more oil to be taken out of the market which should lead to higher probability for oil prices to stick to current levels and eventually see a higher uptick later in 2018,” John Sfakianakis, director of economic research at the Gulf Research Centre in Riyadh told Gulf News.
Markets will also be looking towards two key oil market reports that will be published this week that will throw light on the demand and supply equation as well as US oil production that has been rising steadily during the past thirteen months.
Last week US production hit a record of 9.7 million barrels per day.
“In the November update, Opec was looking for a 2018 deficit of 630,000 barrels per day while the IEA [International Energy Agency] saw a surplus 100,000 barrels per day. Whichever way the pendulum eventually swings will have a significant impact on market sentiment,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Data from oil services firm Baker Hughes shows rig count in the US going up by two to 931 last week with oil rigs up 2 to 751 and gas rigs unchanged at 180.
Monthly oil markets reports from Opec and the International Energy Agency will be published on December 13.
Source: http://gulfnews.com/business/sectors/energy/oil-prices-expected-to-stick-to-current-levels-1.2138320
Read MorePublished in Oil Industry News on Friday, 8 December 2017
The Forties pipeline stream—the United Kingdom’s main export vein for its Scottish refineries—saw disrupted flows on Thursday after officials spotted a “seepage” onshore. Another flaring issue at the Kinneil terminal also caused a supply disruption with Forties, a report by S&P Global Platts said on Thursday.
The Swiss firm Ineos just finished buying the pipeline and the Kinneil terminal from British Petroleum just over a month ago. The flow of forties has been cut while the terminal is due to restart shortly, the new operator said.
“Ineos has mobilized a repair and oil spill response team following the identification of a very small amount of oil seepage during a routine inspection of the Forties Pipeline System at Red Moss, near Netherley, Aberdeenshire, at approximately 10:00 hours yesterday,” an official statement read.
The police have closed a local road and cordoned off a 300-meter area for workers to resolve the issue.
“A small number of local residents within this area have been advised to temporarily relocate,” it added. “We will work to resolve the issue and monitor the situation. We apologize for any inconvenience caused.”
The spill is not severe, with just a few drops leaking from the pipeline every minute. This is no “contamination issue” at this point due to its early detection during scheduled maintenance.
Regarding the shuttered terminal, the company, currently trying to start shale drilling in the UK, added: “Due to start-up operations there has been flaring at our site in Kinneil. We would like to apologize to local residents for any inconvenience caused and are doing everything we can to minimize any disturbance. The safety of local residents and our staff is our priority and we would like to offer our reassurances that flaring does not pose any risk to the public.”
Source: Oil Price
Read MoreCNBC/30 November 2017
European oil giant Royal Dutch Shell wants to play a major role in combating climate change in the coming decades, CEO Ben van Beurden told CNBC on Wednesday.
Shell announced on Tuesday that it will aim to cut its carbon footprint by 20 percent by 2035 and halve its CO2 emissions by 2050. That is a lofty goal for a company that counts itself among the largest oil companies in the world.
The Anglo-Dutch company will also start disclosing how much carbon is emitted from the energy products it sells into the market. Currently, Shell reports on carbon emitted from its own operations, but does not release estimates that measure how much its business is contributing to global emissions.
“Our view is if society needs to tackle the dual challenge of climate change but also accommodating higher demand for energy — as of course the energy poor need to get access to energy as well — we have to reduce the carbon footprint of the energy system as a society to a net zero level,” van Beurden said in an interview that aired on CNBC’s “Power Lunch.”
“That means by 2050, we have to halve the carbon footprint,” he said.
Asked how specifically an oil company of Shell’s scale can so significantly cut carbon emissions, van Beurden said Shell will become more efficient and add more biofuels and renewable power into its business mix. It will also invest in areas like carbon capture and storage, an emerging technology that scrubs greenhouse gases from emissions and stores them underground, according to van Beurden.
Shell’s fossil fuel business dwarfs its clean energy operations today. The $25 billion to $30 billion Shell plans to spend each year will mostly go toward developing deepwater and onshore oil and gas and processing liquefied natural gas and chemicals.
Meanwhile, Shell plans to increase its spending on its clean-tech focused New Energies segment to $1 billion to $2 billion a year through 2020.
It formed the unit in 2016 to develop clean energy operations that complement its legacy fossil fuels business. The New Energies segment produces biofuels like corn-derived ethanol and hydrogen fuel. It is also piloting projects to power some of its legacy operations with solar panels.
Shell entered the wind energy business in 2001 and now operates six wind farms in the United States and Europe, according to its website. It is part of a consortium that will build two offshore farms in the Netherlands designed to generate enough energy to power 825,000 Dutch homes.
Shell’s big push into natural gas could also help offset its carbon emissions.
Natural gas emits about half as much carbon as coal when it’s burned. It also beats diesel, heating oil and gasoline when it comes to CO2 emissions, the primary contributor to global warming.
“We are not just an oil company,” van Beurden said. “If anything we are more a gas and oil company, and on top of it, of course, we are a much broader energy company, as well.”
Shell is the biggest independent producer of liquefied natural gas, or natural gas cooled to liquid form, which makes it easier to ship around the world. The company has been piloting ways to expand the use of LNG, including by using it to power sea-faring ships and road vehicles.
News Source: CNBC
Read MoreSingapore Business Review/30 November 2017
Half of them plan to invest their disposable income next year.
Almost all or 94% of Singaporeans feel the need to improve their understanding of investments, investment manager Schroders revealed.
According to its Global Investor Study, when it comes to their disposable income, the number one priority for people in Singapore next year is to invest it in some way. About 30% plan to invest in stocks, whilst 20% prefer to leave their cash in the bank or at home.
Schroders also identified investors’ priorities for their disposable income and found 50% will invest, 20% will save, 10% will spend, 11% will pay off debt, and 9% will do other things like invest in their own business.
Meanwhile, the uncertainty surrounding current international politics and world events does not appear to be putting people off investing.
Almost half at 48% say they don’t let politics and world events detract from their investment objectives. A majority of 68% are more positive and see world events as investment opportunities. About 35% don’t see long-term implications for investors.
However, many have become more risk-averse.
“This suggests there is a level of confusion in Singapore surrounding how to take the right amount of risk to achieve a desired outcome,” Schroders said.
The firm added that this is reflected in the high return expectations people have. ABout 41% expect a 5-9% return and 31% expect a 10-19% return.
The average return expectation is at 9.1%, which is higher than the 7.2% annual global average stock market returns since 1987.
Moreover, the way in which people are making and managing their investments has been changing, with technology playing a greater role.
When managing bank accounts, Gen X investors use technology the most at 77%, followed by millennials at 75%, and baby boomers at 74%.
When choosing investments, Gen X investors also lead the way at 62%, followed by millennials at 60%, and baby boomers at 50%.
When managing investments, 71% of Gen X investors use technology, whilst 65% and 57% of millennials and baby boomers do.
News Source: Singapore Business Review
Read MoreHuman Resources Online/30 November 2017
In a survey by Workday polled at its recent Engaging Singapore’s Workforce of the Future panel discussion attended by Human Resources, 40% of respondents cited competition for talent as the biggest issue for Singapore’s services companies in 2018. Other challenges included managing workforce diversity (23%); and a lack of data and insights (23%).
According to the report, changing work habits, including flexible working arrangements, which is increasingly prevalent in the services industry, was seen as less of an issue with only 14% of leaders sharing the sentiment.
Additionally, half of the respondents forecast big data analytics to be the technology which will have the greatest impact on employee engagement in Singapore’s services companies in 2018. Around one in four leaders also forecast social media (27%) and artificial intelligence (23%) to have the most impact.
On barriers, the study revealed that 43% of HR leaders said cost of implementation was the biggest barrier to digital transformation in HR in the services industry.
In the media release, David Hope, Asia Pacific president, Workday, said: “New technologies such as big data analytics are impacting how Singaporean companies plan, manage and develop their workforces. As Singapore’s services industries continue to grow and diversify, we forecast they will be most impacted.”
News Source: Human Resources Online
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