Low-interest environment driving investors to seek higher yields

SINGAPORE: The low-interest environment is driving investors to seek higher returns as global economic conditions improve.

Flushed with liquidity from major central banks' monetary easing, most analysts agreed that there is little upside left on safe assets like sovereign government debts.

Instead, analysts are seeing more investors investing in high yield bonds often classified as distressed that offer returns of over 6 percent per annum.

With the US Presidential election and China's leadership change out of the way, Asian investors are working up an appetite for riskier assets.

But this time, they are putting their money in fixed income products instead of Asian equities, which offer far better returns than bonds.

Thailand and Philippines stock indices have showed a over 30 percent return so far this year, while, bigger market like Hong Kong's Hang Seng Index gained some over 20 percent.

Schroder Investment Management's head of Asian Fixed Income, Rajeev De Mello, said: "Interest rates are going to remain close to zero. So for a lot of investors who need returns, they don't have too much choice -- it is either they buy bonds or buy equities.

"But for many types of investors, equities may be just too riskier and they may need a more predictable revenue stream."

In recent months, Asia has seen a growing number of corporate debt issues, which are oversubscribed.

Some investors are even drawn to beaten-down corporate bonds.

CreditSights' senior credit analyst, Sandra Chow, said: "In the past couple of weeks, we've seen a big shift into the high yield sector. A lot of bonds which was previously traded at double-digit yield are now coming to single-digit or even lower yields."

The credit quality of corporate bonds may not be improving, but analysts said bond funds face growing pressure from clients to deliver better-than-market returns of 9 to 10 percent.

Apart from market liquidity, French bank, Credit Agricole says wealthy individuals in Asia are also on the lookout for steady returns for their growing wealth.

Based on an estimated rate of growth 8 percent a year, China alone is expected to generate some US$560 billion of net new wealth every year.

- CNA/lp

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BJP ally JD(U) backs PM's remark on plight of minorities in Gujarat

NEW DELHI: Backing Prime Minister Manmohan Singh's remarks on the plight of minorities in Gujarat, JD(U) said on Monday there are "serious reservation in the minds of minorities concerning Narendra Modi."

Stepping up the Congress campaign in Gujarat, Singh had told an election rally there on Sunday that minorities, including some government officials, felt insecure under the Modi government.

"Election campaign is going on in the state. It is true that there are serious reservation in the minds of minorities concerning Narendra Modi. There is no doubt about it and he (PM) has utilised it as a Congress leader during the election campaign," Janata Dal (United) leader Shivanand Tiwari told reporters outside Parliament House.

BJP had on Sunday rubbished the Prime Minister's comments that minorities were feeling "insecure" in the BJP-ruled state and said Congress will be in a minority in Gujarat after the assembly elections.

On the issue of reservation in promotion of SC/ST employees, Tiwari said, "We are supporting the promotion in reservation in Bihar."

Asked whether his party would support it at the national level, he said, "We will examine it and then decide."

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Plants Grow Fine Without Gravity

When researchers sent plants to the International Space Station in 2010, the flora wasn't meant to be decorative. Instead, the seeds of these small, white flowers—called Arabidopsis thaliana—were the subject of an experiment to study how plant roots developed in a weightless environment.

Gravity is an important influence on root growth, but the scientists found that their space plants didn't need it to flourish. The research team from the University of Florida in Gainesville thinks this ability is related to a plant's inherent ability to orient itself as it grows. Seeds germinated on the International Space Station sprouted roots that behaved like they would on Earth—growing away from the seed to seek nutrients and water in exactly the same pattern observed with gravity. (Related: "Beyond Gravity.")

Since the flowers were orbiting some 220 miles (350 kilometers) above the Earth at the time, the NASA-funded experiment suggests that plants still retain an earthy instinct when they don't have gravity as a guide.

"The role of gravity in plant growth and development in terrestrial environments is well understood," said plant geneticist and study co-author Anna-Lisa Paul, with the University of Florida in Gainesville. "What is less well understood is how plants respond when you remove gravity." (See a video about plant growth.)

The new study revealed that "features of plant growth we thought were a result of gravity acting on plant cells and organs do not actually require gravity," she added.

Paul and her collaborator Robert Ferl, a plant biologist at the University of Florida in Gainesville, monitored their plants from the Kennedy Space Center in Florida using images sent from the space station every six hours.

Root Growth

Grown on a nutrient-rich gel in clear petri plates, the space flowers showed familiar root growth patterns such as "skewing," where roots slant progressively as they branch out.

"When we saw the first pictures come back from orbit and saw that we had most of the skewing phenomenon we were quite surprised," Paul said.

Researchers have always thought that skewing was the result of gravity's effects on how the root tip interacts with the surfaces it encounters as it grows, she added. But Paul and Ferl suspect that in the absence of gravity, other cues take over that enable the plant to direct its roots away from the seed and light-seeking shoot. Those cues could include moisture, nutrients, and light avoidance.

"Bottom line is that although plants 'know' that they are in a novel environment, they ultimately do just fine," Paul said.

The finding further boosts the prospect of cultivating food plants in space and, eventually, on other planets.

"There's really no impediment to growing plants in microgravity, such as on a long-term mission to Mars, or in reduced-gravity environments such as in specialized greenhouses on Mars or the moon," Paul said. (Related: "Alien Trees Would Bloom Black on Worlds With Double Stars.")

The study findings appear in the latest issue of the journal BMC Plant Biology.

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Mexican-American Star Dead in Plane Crash: Father

UPDATED: Multiple reports, including one from Gerardo Ruiz Esparza, Mexico's Secretary of Communications and Transports, confirm that the remains of the private jet carrying Jenni Rivera have been found, with no survivors. Rivera, 43, was one of seven passengers.

Rivera's father, Pedro, confirmed the news of his daughter's passing to reporters stationed outside of his home in Lakewood, Calif., where several family members are gathered, including Rivera's mother Rosa and her eldest daughter Chiquis, who has still not made any statements. Rivera's father reportedly received the news via telephone from his son, singer Lupillo Rivera, who was in Mexico at the time of the jet's disappearance. "This is the first tragedy of this kind that we suffer as a family," Rivera's father told reporters on Sunday evening. "I hope people remember her as she was - someone who was straight with the world."

Celebrity reactions on Twitter have poured in since news of the disappearance of Rivera's jet, including Paulina Rubio (who was set to co-host the Mexican edition of The Voice with Rivera) William Levy, Joan Sebastian, Ricky Martin, and others.

See also: Jenni Rivera Immortalized in new Track 'La Misma Gran Señora

AP Photo/Lynne Sladky, file

Andy Williams Dead: 'Moon River' Singer Remembered Watch Video

Mexican officials have confirmed the disappearance of a private jet carrying regional Mexican music superstar Jenni Rivera that took off from the northern Mexican city of Monterrey at 3:15 a.m. local time on Sunday and fell off the radar 10 minutes (or 62 miles) after take-off.

The Learjet 25 jet, which dates back to 1969, is believed to have been carrying seven people – five passengers and two pilots. It was headed for Toluca International Aiport, located outside of Mexico City, where it was meant to arrive at 4:40 a.m. An official search for the jet was initiated at sunrise.

Rivera's publicist Arturo Rivera and her make-up artist Jacob Yebale are believed to have been on that flight. Their most recent tweets are of photos from Rivera's concert in Monterrey on Saturday night.

The Mexican American singer's most recent tweet is a re-tweet of what appears to be a fan's message.

Rivera was due in Toluca this evening for the taping of a Mexican TV show, La Voz. Televisa has canceled tonight's show given Rivera's disappearance.

Known as La Diva de la Banda and beloved by fans on both sides of the border, Rivera, 43, has had a groundbreaking career in regional Mexican music, selling some 15 million records. Among her many feats in a male-dominated genre, she made history in September 2011 when she sold out the Staples Center in Los Angeles, the first female regional Mexican artist to do so. Her reality show on mun2, I Love Jenni, is one of the network's highest rated shows. Rivera made her film debut at the 2012 Sundance Film Festival in the indie family drama Filly Brown, due in theaters in January 2013.

See Also: 'Filly Brown Gives Jenni Rivera a Chance to Grow and Gina Rodriguez a Chance to Shine

The Long Beach, Calif.-born singer's personal life has often called for as much attention as her career. A mother of five, Rivera had filed for divorce from baseball player Esteban Loaiza in October after two years of marriage, citing "irreconcilable differences." Soon after, rumors of an affair between Loaiza and Rivera's own daughter Chiquis surfaced, which Chiquis addressed on Twitter in October by saying, "I would NEVER do that, Ever! That's a horrible accusation."

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Chavez admits cancer relapse, designates heir apparent

CARACAS: Leftist Venezuelan President Hugo Chavez admitted a relapse of his cancer late Saturday and designated vice president Nicolas Maduro as his heir apparent in case "something happened" to him.

Speaking on national television, an emotional Chavez said a return of cancer cells was detected during his most recent visit to Cuba for a medical examination, and he will return to the communist-ruled island as early as Sunday for another round of surgery.

"During this thorough examination, they again detected some malignant cells in the same area as before," Chavez said.

He did not offer details, but his cancer was first detected in the pelvic area. Neither the Venezuelan leader, nor his Cuban doctors have ever disclosed what kind of cancer that was.

He admitted he was suffering "somewhat strong" pain and was taking tranquilizers as part of preparation for his upcoming surgery.

Chavez acknowledged that his Cuban medical team had conveyed to him a sense of urgency about the operation, which he said was now "absolutely necessary."

"The doctor recommended that I undergo surgery yesterday (Friday) at the latest, or this weekend," he noted. "But I did not agree and came back home."

Chavez returned from Havana on Friday after a 10-day stay in Cuba. He had not been seen in public for three weeks.

The Venezuelan leader also said that in the event "something happened" and he were incapacitated, vice president Nicolas Maduro would step in and assume control of the government for the rest of the 2013-2019 term, as required by the constitution.

But in what appeared like a presentation of his final will, the president also indicated he would like Maduro to take over the reins of power in a post-Chavez period, urging Venezuelans to vote for him in the next presidential elections.

"You choose Maduro as president of the republic," said Chavez told the nation. "I am asking you this from all my heart."

Maduro, who has been serving as Venezuela's foreign minister for the past six years, was appointed vice president in the wake of the October presidential elections. He has held both portfolios since.

Firebrand leader Chavez made his latest announcement despite frequent assurances on the campaign trail before his re-election in October that he had been cured of cancer.

Recurring bouts of the disease have dogged Chavez's presidency for the past couple of years, requiring him to spend weeks at a time being treated in Cuba.

He had a cancerous tumor removed from near his pelvic area last year.

The Venezuelan leader, 58, has repeatedly claimed to have beaten the cancer that was diagnosed in 2011 and shrugged off his illness to see off a unified opposition and secure another six-year term on October 7.

In Cuba last week, the official newspaper Granma explained that Chavez's treatment consisted of oxygenation.

The American Cancer Society says there is no evidence that this oxygen treatment -- in which a patient gets inside a pressurized chamber and breathes pure oxygen for an hour -- works against cancer.

But the society says it can serve as treatment for ailments stemming from radiation treatment.

Chavez, who has been in power since 1999 and gained global prominence as an anti-American firebrand, appeared weak and subdued during the presidential campaign, but still managed to win another term that extends to 2019.

Prior to Saturday's surprise announcement, he had last been seen in public on November 15, and two weeks later he went to Cuba for treatment.

Over the past year and a half, Chavez has missed practically every regional meeting he was to have attended, such as the Summit of the Americas in Colombia, the Mercosur summit in Brazil and last month's Ibero-American summit in Cadiz, Spain.

- AFP/xq

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India misguided, paranoid over China: Guha

Shreya Roy Chowdhury, TNN Dec 8, 2012, 06.12AM IST

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

Read More..

Plants Grow Fine Without Gravity

When researchers sent plants to the International Space Station in 2010, the flora wasn't meant to be decorative. Instead, the seeds of these small, white flowers—called Arabidopsis thaliana—were the subject of an experiment to study how plant roots developed in a weightless environment.

Gravity is an important influence on root growth, but the scientists found that their space plants didn't need it to flourish. The research team from the University of Florida in Gainesville thinks this ability is related to a plant's inherent ability to orient itself as it grows. Seeds germinated on the International Space Station sprouted roots that behaved like they would on Earth—growing away from the seed to seek nutrients and water in exactly the same pattern observed with gravity. (Related: "Beyond Gravity.")

Since the flowers were orbiting some 220 miles (350 kilometers) above the Earth at the time, the NASA-funded experiment suggests that plants still retain an earthy instinct when they don't have gravity as a guide.

"The role of gravity in plant growth and development in terrestrial environments is well understood," said plant geneticist and study co-author Anna-Lisa Paul, with the University of Florida in Gainesville. "What is less well understood is how plants respond when you remove gravity." (See a video about plant growth.)

The new study revealed that "features of plant growth we thought were a result of gravity acting on plant cells and organs do not actually require gravity," she added.

Paul and her collaborator Robert Ferl, a plant biologist at the University of Florida in Gainesville, monitored their plants from the Kennedy Space Center in Florida using images sent from the space station every six hours.

Root Growth

Grown on a nutrient-rich gel in clear petri plates, the space flowers showed familiar root growth patterns such as "skewing," where roots slant progressively as they branch out.

"When we saw the first pictures come back from orbit and saw that we had most of the skewing phenomenon we were quite surprised," Paul said.

Researchers have always thought that skewing was the result of gravity's effects on how the root tip interacts with the surfaces it encounters as it grows, she added. But Paul and Ferl suspect that in the absence of gravity, other cues take over that enable the plant to direct its roots away from the seed and light-seeking shoot. Those cues could include moisture, nutrients, and light avoidance.

"Bottom line is that although plants 'know' that they are in a novel environment, they ultimately do just fine," Paul said.

The finding further boosts the prospect of cultivating food plants in space and, eventually, on other planets.

"There's really no impediment to growing plants in microgravity, such as on a long-term mission to Mars, or in reduced-gravity environments such as in specialized greenhouses on Mars or the moon," Paul said. (Related: "Alien Trees Would Bloom Black on Worlds With Double Stars.")

The study findings appear in the latest issue of the journal BMC Plant Biology.

Read More..

Gay Marriage: Will Justices Follow Popular Opinion?

The Supreme Court's announcement that it would hear two cases challenging laws prohibiting same-sex marriage has reinvigorated one of the most hotly contentious social debates in American history, a debate that has been fueled by a dramatic change in attitudes.

With some states taking significant steps towards legalizing gay marriage, the hearings come at a critical moment.

This week in Washington State, hundreds of same-sex couples lined up to collect marriage licenses after Gov. Christine Gregoire announced the passing of a voter-approved law legalizing gay marriage.

"For the past 20 years we've been saying just one more step. Just one more fight. Just one more law. But now we can stop saying 'Just one more.' This is it. We are here. We did it," Gregoire told a group of Referendum 74 supporters during the law's certification.

Washington is just the most recent of several states to pass legislation legalizing same-sex marriage, signifying a significant departure from previous thinking on the controversial subject.

READ: Court to Take Up Same-Sex Marriage

A study by the Pew Research Center on changing attitudes on gay marriage showed that in 2001 57 percent of Americans opposed same-sex marriage, while 35 percent of Americans supported it.

The same poll shows that today opinions have greatly shifted to reflect slightly more support for same-sex marriage than opposition -- with 48 percent of Americans in favor and 43 percent opposed.

In fact, just two years ago, 48 percent of Americans opposed same-sex marriage while only 42 percent supported it -- indicating that opinions have changed dramatically in the last couple of years alone.

David Paul Morris/Getty Images

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It's hard to imagine that only 16 years ago, the fervent gay marriage debate led to the conception of the Defense of Marriage Act, which defines marriage as a union solely held between a man and a woman.

While debating the Defense of Marriage Act in September 1996, former Sen. Robert Byrd said: "If same-sex marriage is accepted, then the announcement will be official: America will have said that children do not need a mother and a father. Two mothers or two fathers will be OK. It'll be just as good. This would be a catastrophe."

Even a few short years ago a newly-elected President Obama did not support the legalization of gay marriage. It wasn't until earlier this year, at the end of hiss first term and with the impending election in sight, that the president told ABC's Robin Roberts the he'd "been going through an evolution on this issue."

Obama went on to attribute his shift in stance to the influence of his daughters.

"You know, Malia and Sasha, they've got friends whose parents are same-sex couples. It wouldn't dawn on them that somehow their friends' parents would be treated differently," he said. "That's the kind of thing that prompts -- a change in perspective."

Obama isn't the only one to experience an evolution in thinking on the matter of gay marriage. Attitudes towards same-sex marriage have shifted dramatically over the past decade across the board, particularly in the past few years.

Gone are the days when a majority of people opposed same-sex marriage; the days when gay politicians and supporters of same-sex marriage could not get elected.

Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com

Today, nine states and the District of Columbia allow same-sex unions -- a number likely considered inconceivable just a few short years ago. And yet, the same-sex marriage debate still begs for the answering of a question: Will this newfound public opinion, largely driven by young people, women and Democrats, have an effect on the Supreme Court's ultimate decision on the matter?

"I think (gay marriage is) just not a big deal for a lot of young people," Elizabeth Wydra of the Constitutional Accountability Center says. "The justices are human beings so they're not completely immune to public opinion. ... I think the real question for them is going to be do they want to be on the wrong side of history?"

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Dual-key EC units becoming more popular

SINGAPORE: Dual-key units in executive condominiums (ECs) are rising in demand among home-seekers.

Developer MCC Land said its executive condominium project One Canberra sold out its 95 dual-key apartments within a month, from when the project was launched in April.

The developer is now confident that its new project, the EC Forestville, will also do well.

The number of dual-key apartments in Forestville is twice that of such units in a usual EC development.

Located in Woodlands, the project has 653 units, 201 of which are dual-key apartments with three to five bedrooms.

Sizes range from 1240 to 2150 square feet, depending on the number of rooms.

Analysts said that developers of such ECs take on more risk, as the floor area of each unit is larger and they might earn less per square foot.

But developers feel that dual-key apartments give homeowners more flexibility as it is suitable for multi-generation families.

Mr Michael Tan from Ho Lee Group, the developer of Heron Bay, said: "With dual-key (apartments), (homeowners) are given the room to grow so initially when they don't need (the space), they can rent it out to somebody for rental income. When the need arises, they can take back the extra space they need to allow them to have a bigger and better environment."

- CNA/xq

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India misguided, paranoid over China: Guha

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

Read More..