Billionaires' wealth falls for first time since 2015

ZURICH - The world's richest people became a little less well off last year, according to a report by UBS and PwC, as geopolitical turmoil and volatile equity markets reduced the wealth of billionaires for the first time since 2015.

Billionaires' wealth fell by 4.3% globally to $8.5 trillion last year, the UBS/PwC report found, with a sharp decline in Greater China, including Hong Kong, and the Asia-Pacific region more broadly.

Private wealth in Hong Kong fell 4% in 2018 to $319.8 billion, the report showed, with months of anti-government protests in the Chinese-ruled city and an economic recession clouding the outlook this year.

Some Hong Kong tycoons have begun moving personal wealth offshore, Reuters reported in June, as concerns deepen over the protests.

"We haven't seen any significant outflows, we have been tracking some of these numbers on a regular basis," said Amy Lo, UBS co-head of Asia Pacific wealth management. "Our clients have been diversifying all along, it's not in the last one year."

Private banks including the world's largest wealth manager UBS have felt the effects of U.S.-China trade tensions and global political uncertainties, as clients last year shied away from trading and taking on debt in favour of hoarding cash.

The net worth of China's richest dropped 12.8% in dollar terms on the back of tumbling stock markets, a weaker local currency and a slowdown in growth, the report found, knocking dozens off the billionaires list.

Despite the drop, China still produces a new billionaire every 2-2.5 days, UBS's head of ultra-high net worth clients, Josef Stadler, said in the report released on Friday.

Worldwide, the number of billionaires fell everywhere except in the Americas, where tech entrepreneurs continued to buoy the ranks of the United States' wealthiest.

"This report shows the resilience of the U.S. economy," where there were 749 billionaires at the end of 2018, said John Matthews, head of private wealth management and ultra-high net worth business for UBS in the United States.

While a stock market recovery from a steep drop in late 2018 has helped wealth managers increase their assets, the world's richest families remain concerned about global affairs from trade tensions and Brexit to populism and climate change and are keeping more of their money in cash.

"It is likely that billionaire wealth will go up again this year," said Simon Smiles, UBS's chief investment officer for ultra-wealthy clients, adding it would likely be a more muted increase than the wider financial market rally might suggest. 

source: news.abs-cbn.com

Number of billionaires worldwide jumps 10 pct: study

The number of billionaires worldwide rose above 1,500 last year, a 10 percent jump from 2015, due largely to a surge in Asia, Swiss banking giant UBS and auditors PwC said Thursday.

In an annual report, UBS and PwC said that last year marked the first time it recorded more billionaires in Asia (637) than in the United States (563), crediting the rise of China's entrepreneurs.

Europe took third spot in the report's billionaire database with 342.

The total wealth controlled by the ultra-rich group also shot up to $6 trillion (5.1 trillion euros), marking a 17 percent rise on the previous year when billionaire wealth actually shrank, the report said.

The group of 1,542 billionaires either owns or partly controls companies that employ 27.7 million people, it added.

While the chasm between the world's rich and poor remains a burning political issue across the continents, UBS and PwC said that billionaire assets are increasingly likely to benefit the needy.

"Looking further forward, we estimate that $2.4 trillion (2.1 trillion euros) of billionaire wealth will be transferred in the next two decades as billionaires age, with a significant amount going to philanthropic causes," the report said.

Three quarters of those who newly became billionaires in 2016 were from China and India, the findings showed.

source: news.abs-cbn.com

Oscars auditors apologize for best picture mix-up

HOLLYWOOD -- PricewaterhouseCoopers, the accounting firm responsible for tabulating Oscar ballots, apologized for an "error" in the announcement of the best picture award Sunday, admitting Warren Beatty and Faye Dunaway were handed the wrong envelope.

The embarrassing mix-up saw the Oscar incorrectly given to musical "La La Land" before the actual winner, coming-of-age drama "Moonlight," was finally handed the prize.

"We sincerely apologize to 'Moonlight,' 'La La Land,' Warren Beatty, Faye Dunaway, and Oscar viewers for the error that was made during the award announcement for Best Picture," the company said in a statement.

"The presenters had mistakenly been given the wrong category envelope and, when discovered, was immediately corrected," it added.

"We are currently investigating how this could have happened, and deeply regret that this occurred," it said, hailing the "grace" with which all concerned handled the situation.

The mistake made for a chaotic end to the film industry's biggest night, on which "La La Land" went home with six awards including best director, actress, score and song, to three for "Moonlight."

source: news.abs-cbn.com

Manila seen as a rising hub for real estate investment

MANILA, Philippines - Manila's appeal as an real estate investment and development destination has grown significantly this year, according to a report released by the Urban Land Institute and PwC.

Based on the Emerging Trends in Real Estate 2013 report, the Philippine capital ranked 12th out of 22 cities in the list of top investment cities.

Jakarta topped the list as the number one city in investment and development, followed  by Shanghai, Singapore, Sydney and Kuala Lumpur.

Manila's 12th ranking, however, was higher than Tokyo (13), Seoul (14), Auckland (17) and Osaka (22).

Manila's ascent in the rankings is even more significant, as the city ranked near bottom of the rankings in previous years. It ranked 18th last year.

"Markets in Manila have performed well in the past couple of years as a result of the growing economy, a transparent and business-friendly government, and the country’s ongoing success—an 'eye-opener'—in attracting foreign corporate clients to its business process outsourcing (BPO) facilities. Bureaucracy has declined and transparency has improved considerably over the past few years," the ULI report stated.

In terms of city development, Manila ranked 9th, also ahead of Hong Kong (10), Sydney (13), Melbourne (14), Seoul (17) and Tokyo (18).

ULI said Manila's growing appeal is part of a greater trend that shows investors turning to secondary markets and emerging cities in search of returns.

PH property boom

The Philippine economy's better-than-expected performance has continued to fuel the property boom.

"Manila is in the midst of a property boom. It’s the best that we’ve seen in decades—clearly a sign of the increasing confidence in our economy,"said Judith Lopez, Chairman and Senior Partner at Isla Lipana & Co.

"The government’s transparency has significantly improved, making the country more attractive to foreign investors. The positive outlook in Manila’s real estate sector is mirrored by the great opportunities presented by the BPO and gaming sectors over the next two years," she added.

As proof of the boom, Jones Lang LaSalle reported higher leasing activity in Manila.

"As of October 2012, the firm has tracked 413,000 sqm. of office leases, a 15% rise from 2011 so far. With several more leases expected to close before the year ends, leasing activity has exceeded our forecast. Further, we are seeing confident investment sentiment not just in office development but also in the acquisition of property for future development, whether it be for mixed use, commercial, residential, hospitality, retail or industrial," said Jones Lang LaSalle country head David Leechiu.

Foreign ownership still an issue

However, the ULI report said the Philippines' policy barring foreign ownership of land is a major concern for foreign investors.

"However, though investment prospects appear bright in the Philippines across all sectors, government regulations that bar foreigners from holding majority landownership continue to deter international investment. What is more, local developers have little incentive to partner with foreigners, given the availability of ample liquidity from domestic sources," the report said.

Foreign investors are likely to be limited to the gaming and BPO sectors. "Admittedly, both present
large opportunities, with the latter currently accounting for some 70 percent of new office take-up in Manila," the report said.

The ULI report covered 22 cities in Asia Pacific, citing opinions of investors, developers, property company representatives, lenders, brokers and consultants. ULI is a global nonprofit education and research institute.

source: abs-cbnnews.com