FED Chief Gives Gloomier Outlook on US Economy
Federal Reserve Chairman Ben Bernanke said that a weakening housing market, a strained banking system and rising oil prices has threatened the U.S. economy and restoring financial market stability is a top priority. He stressed that the outlook for economic growth and inflation was unusually uncertain. Bernanke said the slumping housing market was “the most critical and central issue that we face,” because it held the key to consumer spending as well as banks’ financial health. Investors took the statement as a signal that the Fed would keep interest rates unchanged at least through August, and perhaps through the end of the year.

Fannie, Freddie Shares Slide Again On Renewed Fears
Shares of troubled mortgage-buyers Fannie Mae and Freddie Mac dropped again on Tuesday as fears persisted about how investors and taxpayers would be affected by a U.S. plan to prop up the government-sponsored enterprises. Separately, Fannie Mae CEO Daniel Mudd said in an interview on CNBC that the company doesn’t need to tap a government credit line and that it has “a lot of capital.” He also said that he doesn’t envision a need for the Treasury to buy shares of the company.

Oil Slumps The Most in 17 Years
Crude futures on Tuesday closed down more than $6 a barrel, the biggest daily drop in more than 17 years, as concerns that slowing economic growth will dampen oil demand and a monthly report by the Organization of Petroleum Exporting Countries lowering its forecast for world oil-demand growth for 2008 and 2009 triggered a broad sell-off in energy commodities.

Jardine C&C Invests In Vietnam
Jardine subscribed 12%-stake in Truong Hai Auto Corporation (THAC), a leading Vietnamese automotive company forUS$41m. Jardine’s Chairman, Anthony Nightingale said that the investment provides company with a strategic stake as THAC is currently the second largest automobile group in Vietnam by unit sales, with an established commercial vehicle business and a newly launched passenger car operation. Jardine believe that THAC offers attractive long-term growth opportunities.

COSCO To Build Drilling Units
COSCO’s subsi, COSCO Shipyard Group signed Letter of Intent with two wholly-owned subsi of Sevan Marine ASA listed on Oslo Børs to exercise the options secured earlier to build two Sevan 650 drilling units. A separate agreement also provides further options for six more Sevan platforms. Sevan has made prepayment of US$7m to secure the steel materials procurement for the two units under the LOI.

F&N Acquire 74%-stake in KS Realty
F&N’s subsi, Frasers India (I) entered into a conditional agreement with Kotak India Real Estate Fund-I and KS Realty Constructions to acquire 74% shareholding interest in KS Realty for a consideration of $30m. KS Realty is a company incorporated in India and owns land measuring 20.7 acres along Old Mahabalipuram Road in Chennai, India.