Spain's weak banks need 40 billion euros: IMF - Yahoo! Singapore (News)

People hold placardds reading "Enough with Bank abuses" during a demonstration June 2, in Coruna. Spain's weak banks need at least 40 billion euros (US$50 billion) in new capital to strengthen against severe financial shocks, the International Monetary Fund said

Spain's weak banks need at least 40 billion euros (US$50 billion) in new capital to strengthen against severe financial shocks, the International Monetary Fund said.

Stress tests performed by the IMF on the country's battered banking sector indicated the top two banks, BBVA and Banco Santander, were solid.

People demonstrate against banking abuses on June 02, in Madrid. Spain's weak banks need at least 40 billion euros (US$50 billion) in new capital to strengthen against severe financial shocks, the International Monetary Fund said

But the rest of the banking sector could not measure up to official banking capitalization standards in the case of a sharp continuing contraction of the Spanish economy.

"Under the adverse scenario, the largest banks would be sufficiently capitalized to withstand further deterioration, while several banks would need to increase capital buffers by about 40 billion euros in aggregate to comply with the Basel III transition schedule," the IMF said in a statement.

A man takes part in a protest in front of a bank in Barcelona on June 6. Spain's weak banks need at least 40 billion euros (US$50 billion) in new capital to strengthen against severe financial shocks, the International Monetary Fund said

But that would not be enough to cover other restructuring costs and loan portfolio downgrades, the statement said.

"Going forward, it will be critical to communicate clearly the strategy for providing a credible backstop for capital shortfalls -- a backstop that experience shows it is better to overestimate than underestimate," said Ceyla Pazarbasioglu, deputy director of the IMF's Monetary and Capital Markets Department and leader of the IMF's stress test team.

Speaking on background, an IMF official said the banks would likely need a lot more to ensure there was a "credible backstop" in worst-case scenarios.

"In our view the stress tests are a good indicator but they are basically a floor for what you would probably need," the official said.

Often, the official said, in order to convince markets of the strength of the banks they would need a buffer of 1.5 to two times the level of new capital mandated under the stress test.

"Usually you come up with a buffer ... large enough to convince markets so that people don't say, oh well, what if this happens, what if the growth is even worse?"

The stress test results were originally scheduled to be released on Monday, but were moved ahead as European diplomats said Spain was likely Saturday to begin crafting a deal for a EU rescue of its banks.

The banks are hobbled with heavy losses mainly on real estate, with analysts predicting their asset values will continue to decline, and their recourse to commercial markets for capital have dried up.

As the banks rely heavily on short-term liquidity funding from the European Central Bank, Madrid's own ability to provide them with long-term capital has also come under heavy strain.

Ratings agency Moody's warned Friday that even if there is a more direct rescue of the banks, it could possibly downgrade Spain's credit rating due to the "increased risk to the country's creditors."

The IMF tests challenged the banks to meet standards under the internationally-agreed Basel III capital rules, in a severe recession scenario over the next two years -- a 4.1 percent contraction this year and a 1.6 percent contraction in 2013.

Details of how each of the banks performed were not released, but the total needed to measure up to the standards in the study was 37.1 billion euros.

The official said the IMF rounded the estimate up to 40 billion euros, adding that "stress tests.. are not a science, they are indicative."

The IMF Executive Board, after reviewing the stress test report, commended Spain for moving quickly to consolidate the banking sector and launch into financial sector reforms.

But, with Spain and the euro area still under crisis conditions, they urged Spain's authorities "to act swiftly and spare no effort to restore confidence in the financial system and to preserve financial stability."

"The stress tests do not attempt to represent the full scope of capital needs given, for example, possible costs associated with restructuring," they said in a statement.

"The immediate priorities are to strengthen capital buffers and formulate a strategy to deal with banks' legacy assets, guided by an in-depth due diligence of banks' loan portfolios."

PM Lee: The greatest danger for Singapore - Yahoo! Singapore (News)

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  PM Lee warns Singapore cannot afford to slow down and lessen its focus on economic growth. (Yahoo! Singapore file photo/ Alvin Ho)

Prime Minister Lee Hsien Loong warned on Friday that Singapore cannot afford to “slow down” in its pursuit of economic growth.

Speaking at Economic Society of Singapore's annual dinner, he said that would be the greatest danger for Singapore.

“If we are content to just be above average in the league of cities, we will fail. That is the greatest danger if we tell ourselves to slow down, enjoy life today and not worry about tomorrow,” he said.

Instead PM Lee said that now more than ever, in the face of growing competition and the lessons from the US and Europe, Singapore could not afford to be less competitive.

"Being near the front also means we must have a successful, growing economy. There is no other way we can achieve this. We cannot do it by spending what we have inherited from the older generation. We certainly cannot do it by pumping oil or gas from the ground," he said.

"We can only do it if our economy is prospering and creating wealth that we can invest in our city and our people, to make life better for all of us," he added.

[For full transcript of PM Lee's speech, go here]

He painted a grim picture of a Singapore with slow growth -- new investments will be fewer, good jobs will be scarcer and unemployment will be higher.

Singapore would also face a brain drain when enterprising and talented Singaporeans were lured away by more lucrative opportunities and incomes in more competitive cities. In such a scenario, the low-income workers will be hardest hit, he said.

SPEND ON PUBLIC WELFARE?

During his speech, PM Lee however acknowledged growing murmurs that Singapore’s economic success meant she could afford to focus on looking after the less well-off and spend more on public welfare.

"I respect these views. I agree fully that material goals are not everything in life. But we are not going for growth at all costs, nor have we done so... We must always maintain the balance between economic and non-economic objectives, and ensure that the fruits of growth are invested for social purposes which benefit the wider population," he said.

PM Lee also added that it is crucial that growth continues to benefit all in the next twenty years, especially when there is worldwide income inequality coupled with Singapore’s ageing population.

Responding to critics who say not enough is done for the underprivileged, PM Lee said "the reality is that we do much more than we acknowledged or get credit for."

"We have equipped people with the skills and ability to do well for themselves... Over a lifetime, a low-income household will receive more than S$500,000 from the government," he said.

"In fact, households in the lowest income quintile (20 per cent) have on average more than S$200,000 of equity in their HDB flat! This is the direct result of government policy and government grants. It is unmatched by any other country," he added.

'SCANDINAVIAN MODEL WON'T WORK'

PM Lee also said emulating countries with similar population sizes and pro-welfare policies such as Norway or Denmark would not work.

"We face a fundamental choice as a society -- do we want low taxes and targeted welfare benefits; or high taxes on all and comprehensive welfare? Singapore has chosen the first; the Scandinavians the second," he said.

Explaining that such countries are rich in natural resources, have relatively homogeneous societies and are situated in a peaceful and affluent continent that serves as their hinterland, PM Lee said these countries are willing to pay high taxes in exchange for high social protections for all.

While Singapore's personal income tax rate for the very wealthy stands at 20 per cent, those in similar tax brackets in Scandinavia pay anywhere from 40 to 57 per cent, according to data from the Ministry of Finance and Organisation for Economic Co-operation and Development (OECD).

"I do not believe that Singaporeans would be willing to pay the taxes that Scandinavians pay, or that our economy could be competitive at such heavy tax rates," said PM Lee.

For Singapore to rank among the top cities in 20 years' time and achieve social objectives, PM Lee also stressed that political support for the government was key.

"Only when citizens accept the political system as legitimate, and economic order as fair, will they give the government of the support and the mandate to run Singapore in their best interests. And only with this mandate can the government do the best for Singapore and all of us," he said.

Average Woman Thinks About Fashion 91 Times a Day -- Do You? - Yahoo! Singapore (News)

How often do you think about fashion? Try 91 times a day. At least that's what researchers found after conducting a recent poll of 1,000 British women between the ages of 18 and 25. (To put that number in perspective, women think about sex only 10 times a day.)



Related: What Stylish Girls Are Buying 

The researchers asked the women to count the number of times they shopped (online or in-person), daydreamed about shopping, checked out the outfits of others, or just thought about clothing and accessories. You may think you don't obsess over fashion nearly as much as these 1,000 women, but if you really think about it, 91 times a day isn't all that crazy in the scheme of things.

After all, fashion is everywhere --from magazines and TV to the Internet and billboards. As a result, we think about it a lot. Says fashion expert Mark Heyes, "When you look at it logically, the figure makes sense. Compared to 15 or 20 years ago, fashion is so engrained in our culture nowadays -- it's all around us and is rarely more than a glance away."

Related: 12 Ways to Wear a Belt

So what type of fashion are women daydreaming about the most? The study found that 38 percent of the time women think about dresses. We would've guessed shoes or handbags, but apparently accessories don't actually enter our mind as much as dresses do.

Now we want to know: Do you think about fashion 91 times a day? More? Less? Leave your comment below.

100 Tons of 'Alien' Sea Life Wash Up With Tsunami Dock - Yahoo! Singapore (News)

The dock that washed ashore in Oregon is 66 feet long and covered with an estimated ton of marine life.

A Japanese dock that ripped from its moorings during the 2011 Tohoku earthquake and tsunami and washed ashore in Oregon this week brought with it an estimated 100 tons of sea life.

Oregon State University (OSU) scientists said Thursday that there are about 13 pounds of organisms per square foot on the 66-foot-long dock, which has been traced to the Northeast coast of Japan. Tests show that the dock is not contaminated with radiation from the Fukushima nuclear plant meltdown after the tsunami, but it did bring with it the danger of invasive species.

"This float is an island unlike any transoceanic debris we have ever seen," John Chapman, an OSU marine invasive species specialist, said in a statement. "Drifting boats lack such dense fouling communities, and few of these species are already on this coast. Nearly all of the species we've looked at were established on the float before the tsunami; few came after it was at sea." [Images: Japanese Tsunami Dock On Shore]

Among the hitchhikers are urchins, starfish, anemones, flealike crustaceans called amphipods, worms, mussels, limpets, snails, filter feeders called solitary tunicates, algae, and four to six species of barnacles, Chapman and his colleagues reported.

Estimates from the Japanese government and NASA suggest the monstrous tsunami swept up 5 million tons of debris, with about 70 percent sinking to the seafloor; the rest (1.5 million tons), like this huge dock, have been floating across the ocean. And although tsunami debris has likely been washing up on the west coast for months, the researchers were shocked to see such a rich raft of lifemake it all the way across the open Pacific, where food is scarce, to Newport, Ore. 

"It is as if the float drifted over here by hugging the coasts, but that is of course impossible," Chapman said. "Life on the open ocean, while drifting, may be more gentle for these organisms than we initially suspected. Invertebrates can survive for months without food and the most abundant algae species may not have had the normal compliment of herbivores. Still, it is surprising."

Oregon state officials are organizing volunteers to scrape the dock clean of the organisms, which will be bagged and disposed of. Many of the species are not native to Oregon's shores, and could damage the state's ecosystem if they become established there.

For example, a brown algae called Undaria pinnatifida was present over much of the dock, according to Jessica Miller, an ecologist at Oregon State. The algae is native to the western Pacific, but has established itself in southern California.

"To my knowledge it has not been reported north of Monterey, Calif., so this is something we need to watch out for," Miller said in a statement.

Likewise, small shore crabs found on the dock are similar enough to ones that live in Oregon that they could find a home on the state's coast. Oysters, clams, limpets, snails, musssels, sea stars and worms could also move in, Miller said.

These little creatures can have a big impact. The invasive zebra mussel, for example has grown so densely in some lakes and streams in the United States that no other species can survive. They even clog intakes for drinking water and for hydroelectric companies.

It's too soon to say whether any of the species on the dock bailed before reaching the beach, according to the Oregon State biologists. 

"We have no evidence so far that anything from this float has established on our shores," said Chapman. "That will take time. However, we are vulnerable. One new introduced species is discovered in Yaquina Bay, only two miles away, every year. We hope that none of these species we are finding on this float will be among the new discoveries in years to come."

Construction worker dies after hit-and-run ECP crash - Yahoo! Singapore (News)

The hit-and-run accident killed one and injured three when a black Audi crashed into a lorry on 23 May. (Yahoo! file photo)


A construction worker died in hospital on Wednesday night after being thrown off his lorry during a hit-and-run accident along the East Coast Park (ECP) expressway, reported local media.

36-year old Bangladeshi worker, Md Hazrat Ali, was flung from the lorry he was in after a black Audi rammed into the vehicle from the back in the crash which took place in the early hours of 23 May.

Md Hazrat hit his head after falling into a drain and fell into a coma. He died from his injuries this week in Changi General hospital, reported the Shin Min Daily News.

The impact of the crash had resulted in the lorry being pushed towards the drain by the side of the road, where Md Hazrat and another fellow construction worker seated at the back fell out of the vehicle.

Singapore Civil Defence Force (SCDF) told Yahoo! Singapore the accident which occurred on 23 May took place at the East Coast Parkway (ECP) towards Changi just before Marine Parade exit. They received a call at 2.26 a.m. and dispatched a red rhino and two ambulances.

SCDF found four persons at the scene – three male Bangladeshis and one male Chinese worker. They were all sent to Changi General Hospital for treatment. Apart from Md Hazrat, the other three were subsequently discharged after being treated.

Witnesses told the Chinese daily the Audi driver was seen to have fled the scene and was seen sobbing at the foot of a nearby void deck. After reportedly turning himself in, the 38-year old was arrested on suspicion of drink driving and is now out on bail.

Shin Min reported that Md Hazrat Ali’s body will be sent back to his hometown in Bangladesh on Saturday.

5 ways to deal with a breakup - Yahoo! Singapore (News)

Oh breakups, you don’t half make us feel grim. Our hearts hurt, we’ve cried the equivalent to a large river, and we haven’t slept for weeks. But don’t panic – ladies, move away from that waterproof mascara, and gentlemen, put down the pint and listen up. Here are five tips to help you banish the breakup blues:

Breakup tip 1:  Stay away, and think of the bad times

 “I’ll nip to her house to see if she’s remembered to feed the fish”, “I must go and check that he managed to get back from the gym okay”. No, no, no, no, NO!  If your relationship ended for a good reason, don’t sit there thinking of excuses as to why you ‘must’ go and see him/her, in the hope that you’ll fall into each other’s arms and have a passionate, slow-motion embrace. If you have any thoughts such as those above, this is the one time you can ditch the “think positive” mantra that people rave on about, and go all out on the “everything’s going wrong” train of thought. It’s common to mourn the end of your relationship by thinking of all those good times you had together, but these thoughts don’t counteract the fact that your relationship wasn’t going well. Whenever you have thoughts about getting back together – and you know deep down that you aren’t right for each other – remind yourself why you broke up and think of all the annoying habits your ex partner had. You’ll be grateful for your new-found freedom in no time.  

Breakup tip 2: Make positive changes to your life

Whilst there’s no doubt that breakups aren’t pleasant, they can serve as catalysts for all sorts of positive changes to your life. Now that you’re single, use it as a rare opportunity to break out of the mould you may feel like you’ve been cast in after spending prolonged amounts of time with this one person. You’re now free to reinvent yourself into whomever you fancy without needing to ask for anyone else’s opinion. If you fancy an image change, put some money aside to treat yourself to a new wardrobe or a new hairstyle, and don’t forget to give your home a little post-breakup boost too – get rid of any items that remind you of your ex and change around the furniture in any rooms that you spent a lot of time together in.

Hairdresser holding up mirror for woman with new haircut

Breakup tip 3: Avoid binging on booze

Whatever you do, don’t seek refuge in alcohol because, as much as your favourite tipple may cheer you up, it can make your emotions come crashing back down twice as fast. You’re more likely to drink more than usual after a breakupto help you relax and forget about your worries, but alcohol makes more problems than it brings about solutions. One minute you’re having a quiet drink over a meal with your friends, and the next you’re knocking back tequila slammers like there’s no tomorrow. You wake up with a banging headache and a ‘sent messages’ folder (all to your ex) longer than the list of drinks you managed to chug back the night before. Avoid alcohol at all costs. Don’t keep it in the fridge, don’t walk past the shop, and don’t even look at the pub on your way home from work.

Breakup tip 4: Remember there are other people with broken hearts

While it won’t solve all of your problems, it can be comforting to know that there are other people out there going through a breakup too. The chances are that they too are being told by well-meaning friends and family that there are “plenty more fish in the sea” as they sob into their pillow thinking “I know, but I want that fish”. Remember that it’s not the end of the world, and there are always people worse off than you.

Breakup tip 5: Understand what’s normal

Don’t panic if you feel as though you never want to go near a member of the opposite sex again, you never walk to walk past the men’s section in the clothing store again, and you never, for the rest of your life, want to even think of a man again. These feelings are completely natural when you’ve just come out of a serious relationship – it’s your body’s way of protecting you from any further heartache. One day, you’ll realise you have butterflies in your stomach, and you’re feeling slightly giddy over another person. Unfortunately, as the saying goes, you’ve got to take the rough with the smooth, and before you can experience those joyous sensations again, you must go through the hard part first. Breaking up is never easy to do, but once you’re at that ‘rock bottom’ stage things can only go up. It will all be worth it once you’re settled down with someone you’re much happier with. 

Top 5 breakup foods - Yahoo! Singapore (News)

Ice cream

Ice cream is one of the world's most popular comfort foods. However, the frozen dessert is packed with calories, meaning that working your way through litres of the stuff will more likely leave you feeling guilty, bloated and sluggish than comforted.

Indulge your cravings without the guilt by replacing ice cream with a low fat tub of frozen yoghurt - or fruit sorbet, if you are feeling particularly saintly. With the many flavours of frozen yoghurt available today, switching your frozen treat does not have to mean compromising on taste. For an added health boost, try sprinkling some walnuts on your dessert to up your intake of omega-3 fatty acids, which can help improve your mood.

Chocolate

Chocolate is another food frequently in demand following a breakup. Unfortunately, chocolate - like many of our favourite treats - is high in fat and sugar. However, if you find yourself craving chocolate following a breakup, there is no need to completely deny yourself.

Chocolate contains relaxing magnesium, soothing anandamide and mood-boostingphenylethylamine, making chocolate a good mood food. To safeguard your health, try snacking on dark chocolate instead of milk, and limit your intake to a few squares a day. Alternatively, try switching your chocolate bar for some chocolate-covered strawberries or raisins to up the nutritional value of your snack.

Crisps and chips

Family-sized bags of potato or tortilla chips are all too tempting to tuck into in the face of a breakup. However, not only are crisps packed with fat, calories and salt, but they have next to no nutritional value, so munching on them is unlikely to leave you feeling great.

To satisfy cravings while improving your health and waistline, try swapping crisps for some lightly seasoned popcorn; a healthy wholegrain snack that is lower in fat than crisps, higher in fibre, and packed with antioxidants and nutrients. Popcorn also contains B vitamins, which have greatmood-boosting properties.

Pizza

Few of us feel like cooking when we are down, so pizzas and takeaways might seem like a good meal option following a breakup. However, while the odd slice of pizza is unlikely to do you any harm, making pizza a regular part of your diet is likely to take its toll on your health, mood and appearance.

Fortunately, pizza is a "junk food" that actually has many healthy elements when done right, so next time you are tempted by a pizza, try forcing yourself out in the kitchen to prepare a healthy version instead. To make a healthier pizza, try replacing the dough with some wholegrain ciabatta or pitta bread, and pile on the veg. While it is also wise to go easy on the mozzarella, a bit of cheese could actually do you good due to its high levels of tryptophan ; an amino acid which boosts serotonin.

Cakes and cookies

If cakes and cookies are your weakness, it may be worth switching to some lower fat alternatives to help you stay in shape while braving your breakup. To replace the cookies, opt for some chocolate or caramel flavoured rice or corn cakes, which are lower in fat, calories and cholesterol. Alternatively, try some dried fruit oatcakes, or a healthy fruit and seed bar.

If you are craving something sweet but slightly more stodgy, try replacing cakes with hot-cross buns, malt loaf or sweet bagels, which are lower in fat than cake (so long as you go easy on the margarine!) and also have a higher nutritional value. Alternatively, try some pure fruit spread on toast or crumpets for an easy, healthy and comforting sweet snack.