Uncertainty Paralyses Money Markets
Money markets were paralysed on Wednesday as lending beyond a week virtually dried up amid concerns over the US plan to buy up toxic assets. As uncertainty over the US$700b package hung over the markets, conditions for interbank lending sharply deteriorated on Wednesday afternoon in New York. Renewed pressure on term Libor sent two-year swap spreads to a record 1.66 percentage points above the two-year Treasury yield in late trade. Brokers expected three-month dollar Libor will set at 3.64% on Thursday, after a rise of 26.5 basis points to 3.48% on Wednesday. Traders said Libor somewhat understated the lack of bank lending, as money market funds have withdrawn to the safety of Treasury debt.

Nomura Acquire Lehman’s European Businesses
Nomura, the pre-eminent Asian-based investment bank, has reached an agreement to acquire the European and Middle Eastern equities and investment banking operations of Lehman Brothers. The acquisition will provide Nomura with a market leading equities and investment banking platform in the region and further enhance Nomura’s strategy of connecting Asia and Europe. The deal follows Nomura’s agreement yesterday to acquire Lehman Brothers’ entire franchise in the Asia Pacific region including Japan and Australia.

Allgreen In Successful Joint Acquisition of PRC Nanjing Site
Allgreen Properties has, through its wholly-owned subsidiary Belfin Investments, successfully tendered for a site situated in Nanjing City, PRC together with Kerry Properties and Shangri-La Asia under a joint bid application in the respective proportion of 15% : 45% : 40%, at the purchase price of Rmb200m. The gross site area is approximately 17k sqm and will be designated for hotel, commercial and office uses. This investment is in line with the company’s strategy to expand regionally, especially in the PRC, which it views as a long-term growth market.

Federal Group Secures Its First Coal Contract Worth US$33m
Mainboard-listed Federal International (2000), an integrated engineering and procurement specialist supporting the energy and utility sectors in the region, has, through its indirect wholly-owned subsidiary, Alton International Resources, secured its first milestone contract to sell coal to Swastik Coal Corp, one of the major players in the coal trading business in Central India Region. The 12-month long contract, starting October 2008, will generate revenue of approximately US$33m and the company has the right to review its selling price after 3 months.

Lian Beng Acquires New Property Worth $6m
Lian Beng Group has, through its wholly-owned subsidiary, Lian Beng Investment entered into a sale and purchase agreement with See’s Engineering Company to purchase the property known as Lot 99820P Mukim 24 together with the building known as No. 29 Harrison Road Singapore 369648 at $6m. In view of the growth of its business and expansion of operations over the years, the company plans to relocate its office from its current premises at No. 25 Playfair Road, Singapore 367990 to the above property upon its redevelopment.

China Kangda Clarifies On Nissin’s “Cha Cha Dessert”
China Kangda Food Company has informed that the results of the preliminary verification of the raw milk used by the company in processing “Nissin Retort Pouch Cha Cha Dessert” (Cha Cha Dessert) were found to be safe for consumption. The company, as an original equipment manufacturer, had agreed with Nissin Food to replace the raw milk obtained from Yili by another milk that to be determined as its ingredients to produce the Cha Cha Dessert. The production of Cha Cha Dessert will continue to be processed by the company.

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