Tuesday, July 5, 2011

20110705 1832 FCPO EOD Daily Chart Study.

FCPO closed : 3040, changed : -10 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 3020, 2970, 2930, 2900 level.
Resistance : 3050, 3070, 3100, 3150 level.
Comment :
FCPO closed recorded marginal loss with higher volume participation while overnight soy oil closed for holidays and currently trading little higher.
Reuters survey released shows that market anticipating Jun 2011 to register higher export, stock and production level lead price to trade in negative territory.
Daily chart formed a down doji bar candle with long lower shadow closed near lower Bollinger band level after market opened slightly higher, edge few ticks upwards and fall downward tested near support level and closed off the low of the day recovered partial of the intraday loss.
Chart wise, market reading suggesting a correction range bound downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110705 1753 FKLI EOD Daily Chart Study.

FKLI closed : 1583 changed : -2 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned lower, buyer taking partial profit.
Support : 1580, 1565, 1550, 1540 level.
Resistance : 1590, 1600, 1610, 1620 level.
Comment :
FKLI closed recorded loss with relatively low volume exchanged doing 1 point premium compare to cash market that closed slightly lower while Asia and European market having mixed development  with overnight U.S. market closed for independence day.
Market seems taking a breather after recent gains while Reuters reported that investors expectations for a moderate slowdown in Asia, rather than a hard landing, that will bring inflation rates down has been attracting capital inflows and increasing bets on a second-half recovery in stocks.
Daily chart formed a down doji bar candle closed below upper Bollinger band after market opened lower, traded side way range bound testing near support and resistance level and closed near opening price doing pullback correction.
Technical reading suggesting an upside biased market with pullback correction taking place development possibly testing lower support level.
When to buy : buy at support or weakness with moderate cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110705 1638 Global Market & Commodities Related News.

Equities settle after recent rally; Aussie dips
HONG KONG, July 5 (Reuters) - Asian stocks steadied near one-month highs on Tuesday as market players took a breather after five consecutive days of gains while the Australian dollar dipped ahead of a policy meeting of the country's central bank where it may signal a dovish stance.        
Expectations for a moderate slowdown in Asia, rather than a hard landing, that will bring inflation rates down has been attracting capital inflows and increasing bets on a second-half recovery in stocks. Some markets though, particularly Japan, may be ripe for some profit-taking after jumping 4 percent in five sessions.

Brent falls on economic concerns, stronger dollar
SINGAPORE, July 5 (Reuters) - Brent crude was lower on Tuesday, weighed down by lingering concerns over the health of the global economy, the Greek debt crisis and a stronger dollar.
"There's been a good flow of economic data that has helped oil prices and if that can continue this week we can expect more upside," said Ben Le Brun, market analyst with CMC Markets in Sydney.

U.S. corn, wheat rebound on bargain hunting, demand
SINGAPORE, July 5 (Reuters) - Chicago corn jumped more than 1 percent on Tuesday, while wheat climbed nearly 2 percent on strong physical demand and improved global risk appetite following last week's selloff that was prompted by prospects of higher U.S. supplies.
"European shares rose for the sixth straight day on Monday and jitters about Greece continued to ease," Commonwealth Bank of Australia said in a report.

Thai TCSC to sell 60,000 tonnes of 2011/12 raw sugar
BANGKOK, July 5 (Reuters) - The state-run Thai Cane and Sugar Corp (TCSC) will hold a tender to sell 60,000 tonnes of raw sugar from the current 2011/12 crop next week, a senior TCSC official said on Tuesday.
"The tender will be held on July 12 and all international trading firms could submit bids at premiums over New York raw sugar prices," the official said, asking not to be named.

Vietnam July coffee export to drop from June-traders
HANOI, July 5 (Reuters) - Vietnam is expected to export between 45,000 tonnes and 70,000 tonnes, or 750,000 to 1.17 million bags, of coffee this month, down from an estimated loading of 80,000 tonnes in June, traders said on Tuesday.
"The (domestic) supply is drying up so buyers could switch to taking beans right from stocks in Europe," a trader at a foreign company based in Ho Chi Minh City said.

Ivorian rains boost cocoa, more sun needed-farmers
ABIDJAN, July 4 (Reuters) - Rains in Ivory Coast's key cocoa growing regions last week were ample for the development of the mid-crop until late August, but cloudy weather raised concerns about pests, farmers said on Monday.
Ivory Coast is on the entering the last three months of the 2010/11 season in what is expected to be a bumper crop well ahead of the government's 1.3 million target, thanks largely to good rains.

Bumper Ghana cocoa crop strains local storage
ACCRA, July 4 (Reuters) - Cocoa purchases in world No. 2 grower Ghana reached 940,000 tonnes by mid-June, putting output over 50 percent ahead of last year, the head of the Ghana Cocoa Board (Cocobod) said on Monday.
Cocobod Chief Executive Tony Fofie told Reuters the bumper harvest had strained storage facilities and led to some congestion at some port and depot facilities.

India aims for record grains output in 2011/12
NEW DELHI, July 4 (Reuters) - India aims to produce a record 245 million tonnes of grains in the crop year that started on July 1, Farm Secretary P.K. Basu said on Monday, a rise of about 3.9 percent on the previous year, as the government looks at allowing limited exports.
"We aim to produce a record 245 million tonnes of grains in 2011/12. Given the current trend there are no worries," he told reporters.

Russia customs union raw sugar duty $85/T -lobby
MOSCOW, July 4 (Reuters) - The customs union of Russia, Belarus and Kazakhstan has set its sugar import tariff at $85 per tonne from July, up from $50 per tonne in June, the sugar producers' lobby of the three countries said on Monday.
"In accordance with the regulation, the tariff has been set at $85 per tonne, which corresponds to an average monthly price of 21.85 cents per lb," Andrei Bodin, executive director of the Sugar Producers Association of the customs union, told Reuters.

LME Copper steady; China local debt woes, Greece weigh
SHANGHAI, July 5 (Reuters) - LME copper fell on Tuesday as sentiment soured on talk of China's worrisome local debt burden and a warning by ratings agency Standard & Poor it would treat a French bank plan for a rollover of privately-held Greek debt as a default.
"There is a combination of factors causing a negative turn in sentiment besides the S&P statement. Chinese equities are a bit down now, while investors are also feeling bearish over Moody's statement that it may downgrade the outlook on China's banking system over the local government debt issue," said Shanghai CIFCO Futures analyst Zhou Jie.

Gold edges up after S&P warning, technicals weak
SINGAPORE, July 5 (Reuters) - Spot gold held steady on Tuesday, after a warning by ratings agency Standard & Poor's that it would treat plans for a rollover of privately-held Greek debt as a selective default, underpinning safe haven demand for bullion.  
"We have seen a lot of interest below $1,500, but it is not enough to bring prices back above the level," said Dominic Schnider, an analyst at UBS Wealth Management.

20110705 1610 Palm Oil Reuters Survey.

Reuters Survey :
Malaysia Jun 2011 Crude Palm Oil
- Exports seen up 5.5% at 1.48 million tonnes from May 2011
- Stocks seen up 11.3% at 2.13 million tonnes from May 2011
- Output seen up 3.5% at 1.8 million tonnes from May 2011

20110705 1143 Global Market & Commodities Related News.

GLOBAL MARKETS: Asia stocks pause after 5-day rally
HONG KONG, July 5 (Reuters) - Asian stocks were steady near one-month highs on Tuesday as market players took a breather after five consecutive days of gains while the Australian dollar slipped ahead of a policy meeting of the country's central bank.
Expectations for a moderate slowdown in Asia that will bring inflation rates down has been attracting capital inflows and increasing bets on a second-half recovery in stocks. Some markets though, particularly Japan, may be ripe for some profit taking after recent gains.

OIL: Crude edges up ahead of economy data
TOKYO, July 5 (Reuters) - U.S. crude futures edged up on Tuesday to remain above $95 a barrel, ahead of data gauging the strength of the world's top oil consumer.
U.S. oil inventory data from industry group the American Petroleum Institute and the government's Department of Energy will be delayed by a day to Wednesday and Thursday respectively, due to the Independence Day holiday.

NATURAL GAS: Natural gas ends down ahead of long holiday weekend
NEW YORK, July 1 (Reuters) - Front-month U.S. natural gas futures ended lower on Friday ahead of a long holiday weekend, pressured by record high production and uncertainty about the long-term weather outlook despite warm U.S. temperatures next week that should underpin prices.
"Some people are concerned about the forecast, and whether the heat will continue. It looks like the strongest heat could end by early next week, and some forecasters are only showing temps a little above normal and not the scorching weather we saw last year," a southern commodity trading advisor said.

EURO COAL: Stable prompts, futures hit resistance
LONDON, July 4 (Reuters) - European coal futures trading was dominated by technical factors in thin trading during the U.S. national holiday on Monday while the prompt market moved sideways.
The benchmark API2 2012 coal futures contract opened at $128.10 a tonne on Monday morning and
"If we can get back above the 50 DMA mark I think there is more room on the upside as a lot of traders may go long if that happens," one trader said and added: "This mood is reflected in the crossing MACD signals."

IEA sees sizeable take-up of oil release
LONDON, July 4 (Reuters) - The International Energy Agency said on Monday it hoped a very sizeable portion of its oil stock release will be taken up by the market and the move was already adding to supplies of light, sweet crude.
The IEA, adviser to 28 industrialised countries, on June 23 said it would release 60 million barrels of oil from strategic inventories to fill the gap in supplies left by the disruption to Libya's output.

Venezuela: oil policy unchanged by Chavez health
CARACAS, July 4 (Reuters) - Venezuela's energy policy is not affected by health problems suffered by President Hugo Chavez, his oil minister said on Monday.
"Our energy policy remains the same," the South American OPEC member's Energy Minister Rafael Ramirez told Reuters at a ceremony to welcome Chavez back from treatment in Cuba where he had a cancerous tumor removed.

20110705 1027 Global Economic Related News.

Thailand: Thaksin allies win landmark Thai poles
Allies of Thailand’s fugitive ex-leader Thaksin Shinawatra stormed to victory in elections yesterday, in a remarkable comeback after years of turmoil sparked by his ouster in a military coup. Prime Minister Abhisit Vejjajiva conceded defeat and congratulated a victorious opposition led by Thaksin’s youngest sister, Yingluck Shinawatra, who is now set to become Thailand’s first female premier. With almost all the votes counted, Puea Thai had won 263 seats out of 500, well ahead of the Democrats with 163, according to the Election Commission. (The Sun)

Thailand: Yingluck may spur prices, Baht in ‘double whammy’ for exporters
Efforts by Thailand’s incoming government to boost growth and lift incomes may accelerate inflation, forcing interest rates higher and increasing business costs even as a strengthening currency threatens exports. The Bank of Thailand is assessing the economic effect of policies that may be implemented by the Pheu Thai party after it won the 3 July election, director Mathee Supapongse said. Pheu Thai, which is assembling a five-party coalition that would hold 299 seats in the 500-member parliament, campaigned on pledges to raise the minimum wage and guarantee rice prices for farmers. (Bloomberg)

Spain: Registered unemployment dropped in June for the third month as a recovery in the countrys tourist industry created jobs. The number of people registering for jobless benefits fell by 67,858 or 1.62% from May to 4.12 million, the Labor Ministry in Madrid said in an emailed statement. (Source: Bloomberg)

Vietnam: Central cut its repurchase rate by one percentage point even after inflation accelerated to one of the fastest in the world. The State Bank of Vietnam said it lowered the rate to 14% from 15%, according to an emailed statement. (Source: Bloomberg)

Australia: Retail sales unexpectedly fell and building approvals dropped in May by the most in four months, sending the nations currency lower on expectations the central bank will extend a pause in raising interest rates. Sales dropped 0.6% from a month earlier and permits to build or renovate houses slumped 7.9%, the Bureau of Statistics said in Sydney in separate reports. (Source: Bloomberg)  

Indonesia: Indonesia’s inflation slows, easing pressure for rate increase
Indonesia’s inflation slowed for a fifth straight month in June, easing pressure on the central bank to join its Asian counterparts in raising borrowing costs. Consumer prices in Southeast Asia’s biggest economy rose 5.54% last month from a year earlier, after climbing 5.98% in May, the Central Bureau of Statistics said in Jakarta. President Susilo Bambang Yudhoyono’s policy makers have extended fuel subsidies and let the rupiah climb to contain inflation amid rising food and oil prices. Bank Indonesia has refrained from boosting borrowing costs since its first rate increase in more than two years in February, in contrast with neighbors from Malaysia to India where officials have accelerated monetary tightening. (Bloomberg)

South Korea: South Korea inflation breaches BOK target for sixth month
South Korea’s inflation exceeded the central bank’s target for a sixth straight month in June, adding pressure on the bank to boost borrowing costs again even as export growth slows. Consumer prices rose 4.4% from a year earlier, after a 4.1% gain in May, Statistics Korea said in Gwacheon, south of Seoul. Exports expanded 14.5% last month, the slowest pace since October 2009, missing analysts’ forecasts for a 17.6% gain, a separate report showed. The government raised its inflation estimate for this year to 4% and cut the growth forecast to 4.5% after global demand weakened and energy costs climbed. (Bloomberg)

China: Services slowdown boosts speculation government may ease tightening
China’s non-manufacturing industries expanded at the slowest pace in four months in June, sending stocks higher on speculation the government may ease monetary tightening policies aimed at taming inflation. A purchasing managers’ index dropped to 57 from 61.9 in May, the China Federation of Logistics and Purchasing said on its website yesterday. A reading above 50 indicates expansion. The Shanghai Composite Index rose 1.7%, extending a two-week rally, as expectations climbed that the government will refrain from raising interest rates and ease some lending restrictions due to slowing growth in manufacturing and services. Vice Premier Wang Qishan urged banks to increase financing to small companies that are having problems raising funds, according to a statement yesterday from the State Council. (Bloomberg)

E.U: May producer-price inflation slowed more than economists forecast in May as the economic recovery faltered and oil prices retreated. Factory-gate prices in the euro region increased 6.2% from a year earlier after rising 6.7% in April, the European Unions statistics office in Luxembourg said. Prices fell 0.2% from April, when they rose 0.9%.(Source: Bloomberg)

E.U: Investor confidence rose for the first time in four months in July after oil prices retreated and the economy gathered strength. An index measuring sentiment in the 17-nation euro region rose to 5.3 from 3.5 in June, Limburg, Germany-based Sentix said in an emailed statement. A gauge of current business conditions climbed to 19.25 from 18.50, while an indicator of expectations advanced to minus 7.75 from minus 10.50. (Source: Bloomberg)

EU: Spain approves spending rule, will pay town halls’ pending bills

Spain’s Cabinet passed a rule to cap central-government and town-hall expenditure, while offering EUR3.4bn (USD4.9bn) of state loans so that municipalities can pay debts to suppliers. The government will urge Spain’s regions to adopt similar measures to the decree, Deputy Prime Minister Alfredo Perez Rubalcaba said in Madrid. Under the new law, inflation- adjusted spending can only rise in line with the average of economic growth over the past five years and projected growth for the next four. The Cabinet also authorized the state credit institute to pay as much as EUR3.4bn of municipalities’ unpaid bills, giving mayors three years to pay the money back. The government’s future transfers to mayors’ offices will be used as collateral. (Bloomberg)

EU: Germany raises annual borrowing targets more than 10% on costs of bailout
German Chancellor Angela Merkel’s government raised borrowing targets by more than 10% for the three years through 2015 after pledging contributions to a future European bailout fund, its multi-year budget plan shows. Borrowing will amount to EUR24.9bn (USD36.2bn) in 2013, more than the EUR22.3bn the Cabinet endorsed on 16 March, according to the 2013-2015 budget plan drafted by the Finance Ministry. The government aims to borrow EUR18.7bn in 2014 and EUR14.7bn in 2015, up from EUR15.3bn and EUR13.3bn, respectively. (Bloomberg)

US: Payrolls probably rose at pace that failed to reduce jobless rate
Employers in the US probably expanded payrolls at a pace that failed to reduce the unemployment rate in June as companies sought to contain costs amid slower growth, economists said a report may show this week. Payrolls climbed by 100,000 workers after a 54,000 increase in May that was the smallest in eight months, according to the median forecast of economists surveyed by Bloomberg News ahead of Labor Department data due 8 July. The jobless rate held at 9.1%. Another report may show growth in services cooled. A recovery that Federal Reserve Chairman Ben S. Bernanke said is “frustratingly slow” explains why employers such as Lockheed Martin Corp. (LMT) and Gannett Co. are cutting positions or becoming reluctant to add as many workers. Faster payroll growth is needed to spur consumer spending that accounts for 70% of the economy. (Bloomberg)

US: Manufacturing unexpectedly accelerated in June
US manufacturing unexpectedly accelerated in June, supporting the Federal Reserve’s forecast that the economy will strengthen in the second half of 2011. The Institute for Supply Management’s factory index rose to 55.3, the first gain in four months, from 53.5 in May, the Tempe, Arizona-based group said. Economists projected a decrease to 52, according to the median forecast in a Bloomberg News survey. Figures greater than 50 signal expansion. Stocks climbed for a fifth day on signs manufacturing is rebounding from higher commodities costs and shortages of parts caused by the earthquake in Japan. As emerging markets power sales at companies like Parker Hannifin Corp., bigger job gains may be needed to boost confidence among U.S. consumers, whose spending accounts for 70% of the economy. (Bloomberg)

20110705 1025 Malaysia Corporate Related News.

KLCI chart reading :
upside biased with possible pullback correction.

EPF and RHB denies plans to buy over CIMB
The chairman of the Employees Provident Fund (EPF) and the top executive of RHB Capital Bhd have categorically denied speculation that both parties are involved in a takeover bid of the country’s second largest bank CIMB Group Holdings. Tan Sri Azlan Zainol dismissed the news as “pure speculation,” denying that there was indeed such a plan. RHB Capital managing director Kellee Kam also replied that the bank was not in discussions with CIMB. (StarBiz)

FBM KLCI hits historic high
The FBM KLCI ended trading at another historic high on Friday, closing at 1,582.94 after closing at fresh highs on Wednesday and Thursday on persistent buying interest of select bluechip stocks. In general, the local scenario mirrored sentiments among investors abroad after Greek lawmakers passed further austerity measures which then calmed markets globally. (StarBiz)

DRB-HICOM completes its acquisition of 32.2% in Pos Malaysia
DRB-HICOM Bhd announced on Friday that it has completed its acquisition of a 32.2% stake in Pos Malaysia from Khazanah Nasional. This means DRB-HICOM has replaced Khazanah as the single largest shareholder of Pos Malaysia. To recap, in April, DRB-HICOM made a successful bid to acquire Khazanah’s stake in Pos Malaysia for RM622.8m (based on the price of RM3.60 per Pos Malaysia’s share). (StarBiz)

Wah Seong gets Aussie pipe-coating deal
Wah Seong Corp’s pipe-coating business unit has been awarded a RM137m contract by Australia Pacific LNG Pty Ltd. The contract will involve providing pipeline coatings for the Australia Pacific LNG project in Australia. (StarBiz)

Magna Prima plans project in Australia
Magna Prima will embark on its maiden overseas venture in Melbourne, Australia, with a proposed AUD210m development, Dynasty Living. The company said in a statement the 25-storey, single-tower apartment project would be built on a 2,700 sq m site. It will feature 320 units, inclusive of one to three-bedroom apartments, and a two-storey penthouse. Construction is expected to commence in the fourth quarter and the development is expected to be completed in 2013. (StarBiz)

Petronas job for Tanjung Offshore
Tanjung Offshore Bhd has secured a RM50m contract from Petronas Carigali DB to provide three offshore support vessels for total charter contracts of periods ranging between one and three years. The company announced its unit Tanjung Offshore Services SB was awarded the contract to provide the ships for the primary period from June to July respectively with options to extend between one and two years. (StarBiz)

Oldtown IPO oversubscribed
Oldtown, en route to a listing on Bursa Malaysia Main Market on 13 July, had its initial public offering oversubscribed by 10.8x. The Oldtown White Coffee cafe chain operator and instant beverage mix manufacturer received 9,366 applications for 117.64m shares with a total value of RM147.1m for the public tranche of 10m new shares under its IPO. (StarBiz)

Sabah firms win RM515m contracts
Sabah-based companies have won contracts worth RM515m for the Sabah Oil and Gas Terminal (SOGT) project in Kimanis, Papar. Of the total, RM220m were awarded by Petronas Carigali SB while RM295m were given out by the main SOGT contractor, Samsung-Naim-Petronas Carigali consortium, said Petroliam Nasional Bhd (Petronas) Sabah and Labuan general manager Joseph Podtung. On Friday, Petronas signed a RM57.3m contract with Ladang Sri Delima SB for the construction of an administration building for the SOGT project. (StarBiz)

Genting to buy PMP?
The RM2.5bn deal whereby Genting is to acquire Tanjong’s gaming unit Pan Malaysian Pools SB is definitely going through, according to sources. One source said the deal would be signed on Thursday but another said Genting’s bid had too many conditions and therefore other bidders have been asked to resubmit their offers. However, a third source said that while the deal structure was always important, it would not prevent the deal from going through. (StarBiz)

Asahi to buy Permanis?
Permanis SB, which is PepsiCo Inc’s bottler in Malaysia and a subsidiary of CI Holdings (CIH), has been under Asahi’s radar to expand its operations, with news it is in talks to buy Permanis SB for USD200m. Another unidentified company is also said to be eyeing Permanis. CIH managing director Datuk Johari Abdul Ghani was tightlipped on the talks but did mention it was at an exploratory stage. Asahi’s president Naoki Izumiya was reported in February as saying that the company may spend USD5bn (RM15bn) on acquisitions this year. (BT)

Decision to pass 6% service charge to prepaid users deferred to 1 Sept
The decision to pass on the 6% service tax to mobile prepaid users by telecoms players has been deferred from 1 July to 1 Sept. However, the 1 Sept timeline may not be final as the players are still in talks with the industry regulator and Finance Ministry over the issue. Potential savings by telcos could well range from RM600m to RM765m a year should the telcos pass the tax costs to users. (StarBiz)

Star acquires 4.99% of Catcha Media
Star Publications has purchased a 4.99% stake, or 6.636m shares, of the enlarged paid-up of Catcha Media for RM4.97m. The issue price is RM0.75 per share and the acquisition will be financed from its own funds. Catcha is scheduled to be listed on the ACE market on 22 July. (StarBiz)

Proton: To offer CVT tech in future cars. Proton Holdings Bhd will introduce the continuous variable transmission (CVT) technology in its upcoming range of cars. Proton tests show that CVT can reduce fuel consumption by 4-10%. (Source: The Sun)

CI Holdings: Asahi to buy Permanis? CI Holdings Bhd is in talks with Asahi Group Holdings Ltd to buy subsidiary Permanis Sdn Bhd for USD200m (RM600m). However, Permaniss MD Datuk Johari Abdul Ghani was tightlipped on the talk when contacted. It was reported that the Tokyo-based Asahi had agreed yesterday to buy the mineral-water and juice businesses of closely-held P&N Beverages Australia Pty Ltd for USD309 m (RM927m). Asahi is also in the midst of competing with Suntory Holdings Ltd to buy New Zealands Independent Liquor under a deal worth some USD1.12 b (RM3.36b). (Source: Business Times)

Dijaya: Foreign fund acquires 5% stake in Dijaya. TAEL One Partners Ltd , a Cayman Islands registered company bought 22.75m shares or a 4.99% stake in Dijaya Corp Bhd for RM37.5m. (Source: The Edge Financial Daily)

Grand-Flo: To distribute Apple iPad. Grand-Flo Solution Bhds unit E-Tech IT Sdn Bhd has been appointed as a value-added reseller by Apple to distribute the Apple iPad in Malaysia. E-Tech is now a value-added reseller for the Apple iMac and Macbook. (Source: The Sun)

Property: 825 acres of land for PR1MA. As many as 20 sites on 825 acres of land across the Klang Valley, Rawang and Seremban have been identified for the development of an estimated 42,078 homes under the 1Malaysia Housing Programme or Program Perumahan 1Malaysia (PR1MA). Under PR1MA, homes priced between RM150,000 and RM300,000 will be built in urban and suburban areas across the country. (Source: The Edge Financial Daily)

Petronas Dagangan declares special dividend
Petronas Dagangan Bhd has declared a special dividend of 25sen per ordinary share less income tax  at 25% for the FY ended March 31. This was subjected to shareholders’ approval at the company’s  forthcoming AGM. The entitlement date for the special dividend has been fixed on August 3. Petronas  Dagangan has also proposed a final gross dividend of 35sen per share less income tax at 25% for the  same financial period. (StarBiz)

Lion Corp seeks deferment of RM83m payment
Lion Corporation has sought to defer payments totaling RM83m on the bonds, debts and loan stocks  from  July  31  to  Dec  31.  It  had  issued  notices  of  meetings  dated  July  1  to  the  holders  of  the  bonds,  US dollar debts and redeemable convertible secured loan stocks (RCSLS). The meetings of the  lenders are scheduled to be held on July 25.  Lion Corp said the first deferment was for the  redemption of the outstanding nominal value of the bonds amounting to RM54.4m. The second was  the repayment of the outstanding nominal value of the debts amounting to US$1m. The third was the  payment of the coupon on the loan stocks amounting to RM27.0m. (Financial Daily)

TNB to sell RM5bn Islamic bonds
Tenaga Nasional plans to raise as much as RM5bn from a 20-year ringgit-denominated Islamic bond  offering, said its CEO. “We plan to sell the bonds in August or September,” Datuk Seri Che Khalib  Mohamad Noh said. Proceeds from the offering, the company's first debt sale since 2004, will be used  to finance a coal-fired Manjung power plant in Perak, Che Khalib said yesterday. (StarBiz)

AirAsia to fly high as it becomes one of the biggest airlines in the world
AirAsia is set to become one of the biggest airline groups in the world following its landmark order of  200 Airbus A320neos, said Frost & Sullivan Aerospace & Defence senior consultant Kunal Sinha. He  said the firm order by AirAsia validated three important trends. Apart from the rise of AirAsia, he said  the centre of air transport was shifting from North America towards Asia and the market had given a  thumbs-up to the A320neo. (StarBiz)  

Benalec earmarks RM60m for capex
Benalec Holdings has set aside a capital expenditure of up to RM60m for its FY ending June 30 2012  to fuel its expansion. The capex, which will be funded via a mixture of internally-generated funds and  bank borrowings, will mainly be used to buy new vessels and undertake new jobs. (Business Times)

JAKS clears hurdle for Vietnam power plant
JAKS Resources’ unit has received the investment certificate from the Vietnamese government for its  proposed 1,200MW coal-fired power plant in the province of Hai Duong. Its unit JAKS Pacific Power  Ltd (JPPL) had received the certificate from the Ministry of Planning and Investment of Vietnam on  June 30. (Financial Daily)

Gopeng no longer PN17 company from today
Gopeng will be lifted from its Practice Note 17 (PN17) status effective today, the company announced  in a Bursa Malaysia filing yesterday. Gopeng had applied on May 3 and 11 this year for a waiver from  complying with Paragraph 8.04(3) of the Listing Requirements of Bursa Securities and also, to lift the  company from PN17. (StarBiz)  

Tricubes to launch Myemail in Sept  
Tricubes is set to launch the controversial 1Malaysia myemail service in September, its CEO Khairun  Mokhtar said. “The project is in its final stages of implementation. The email product is done and the  portal is ready,” he said. (Financial Daily)

20110705 1009 Global Commodities Related News.

U.S. corn extends fall, soy rebounds
KANSAS CITY, Mo., July 1 (Reuters) - Corn futures tumbled for a second day in a row, ending nearly 4 percent lower a day after a government report showed improved crop and supply prospects in the United States.
"News that China came in ... is helping to hold the values. And you might see some end-user buying. This seems to be fair value," he said.

Risk of more state intervention pushes up Thai rice price
BANGKOK, July 4 (Reuters) - The export price of Thai rice rose on Monday because of the likelihood of aggressive intervention by a new government to push up domestic prices to help farmers, which has already encouraged traders to hoard rice, resulting in tight supply.
Benchmark 100 percent B grade white rice was offered at $545 per tonne, up 3.8 percent from last week's $525 per tonne, exporters said.

Bulgaria sees 2011 wheat crop up to 4.1 mln T
SOFIA, July 1 (Reuters) - Bulgaria expects a 2011 wheat crop of up to 4.1 million tonnes following favourable weather, up from 4.0 million tonnes harvested last year, the agriculture ministry said on Friday.
"The relatively favourable weather conditions gives us a reason to forecast that grain production will be in the range of 3.9-4.1 million tonnes," it said in a statement.

Coceral cuts 2011 EU wheat, barley crop estimates
BRUSSELS, July 1 (Reuters) - European Union grain trade lobby Coceral cut its forecast for the EU's soft wheat harvest by 3.7 percent to 126.53 million tonnes in 2011, following widespread drought conditions in much of western Europe.
Coceral said on Friday it now expects Europe's top producer, France, to harvest 32.7 million tonnes of soft wheat this year -- 10 percent less than its previous estimate in March -- after unusually dry weather earlier in the season damaged crops.

Rice May Rally 56% as Pro-Thaksin Party Sweeps to Power in Thai Elections (Source: Bloomberg)
Rice prices in Thailand, the biggest exporter, may rally 56 percent by yearend as the party that won parliamentary elections implements a policy to buy the crop from farmers above current rates, according to a survey. The export price may climb to $810 per metric ton by Dec. 31, according to a median forecast of six millers, exporters and traders today and yesterday, who commented after Pheu Thai won a majority in yesterday’s contest.

Sugar eases, concern over Brazil crop; coffee firms
LONDON, July 4 (Reuters) - London white sugar futures eased in light early trading and stood near four-month highs, underpinned by concerns over the size of top producer Brazil's crop, while coffee and cocoa firmed.
Agricultural markets trading on ICE Futures U.S. are shut on Monday for the Independence Day holiday, and will reopen on Tuesday, July 5.

Vietnam cuts 2011 coffee export forecast to 1.26 mln T
HANOI, July 4 (Reuters) - Vietnam has lowered the annual coffee export forecast for calendar 2011 by 3 percent to 1.26 million tonnes, or 21 million bags, based on a low level of stocks in the country, the agriculture ministry said on Monday.
The lower projection would not help lift coffee prices much as traders have forecast the Southeast Asian nation's output from its 2011/2012 harvest to rise to 23-24 million bags, from 21-22 million bags in the current season.

Physical sugar-Demand slows as Ramadan window closes
LONDON, July 1 (Reuters) - A sugar price rally to four-month highs has deterred cash buyers and the window for shipping the sweetener to Muslim countries in time for Ramadan in August is closing, dealers said.
They noted, however, pent-up demand by North African and Middle Eastern countries that had experienced disruption during the "Arab Spring" uprisings.

Europe cash coffee: Not enough Vietnam supplies
HAMBURG, July 1 (Reuters) - Continued low sales by Vietnam slowed robusta trade in Europe's cash coffee market this week and robusta price differentials for physical delivery remained at high levels, dealers said on Friday.
"There is still a lot of demand around for Vietnamese coffee which is not being met because of the low volume of sales offers coming out of origin," one cash trader said. "The Vietnamese are simply not selling."

Kenya coffee agency warns thrips could hit crop
NAIROBI, July 1 (Reuters) - Thrips, tiny insect pests that are hard to detect, may attack Kenya's coffee farms this year and cut output, state-owned Coffee Research Foundation (CRF) of Kenya said on Friday.
Kenya is a relatively small grower but its specialty beans are famous for their high quality and are valued for blending with those from other countries.

India coffee rises on demand from exporters
MUMBAI, July 1 (Reuters) - Coffee prices in India rose at this week's auction on demand from exporters, trader said on Friday.
"Coffee prices have increased on improved demand from exporters; concerns over Brazil's production on reports of frost might have led to the increase," said Divakaran P.K. of UTC Traders in Coorg in Karnataka.  

Cotton, turmeric area down in India's Andhra Pradesh
HYDERABAD, July 1 (Reuters) - A continued monsoon lull over India's southern Andhra Pradesh state has slowed down cultivation of cotton, turmeric and corn in the state, a government official said on Tuesday.
Farmers have cultivated cotton on 476,200 hectares as on June 29 against 605,000 hectares a year ago, while corn on 71,500 hectares, down from 117,000 hectares a year ago.

India coffee exports jump on global shortage
MUMBAI, July 1 (Reuters) - India's coffee exports since the beginning of the marketing year in October doubled on year in value terms to $ $836.86 million and jumped 45 percent in volumes to 286,135 tonnnes, exhausting almost all available surplus from 2010/11 crop.
The exports in Jan-June period jumped 44 percent on year to 220,072 tonnes due to strong demand from importing countries amid a rally in global prices, data with the state-run
Coffee Board showed on Friday.

Kenya coffee agency says pest could cut output
NAIROBI, July 1 (Reuters) - Kenya has warned farmers that thrips, deadly and difficult to detect pests, may attack coffee farms this year and cut production of the beans, the state-owned Coffee Research Foundation (CRF) of Kenya said on Friday.
Kenya is a relatively small grower of the commodity but its speciality beans are famous for their high quality and are much sought after for blending with those from other countries.

Indonesia cocoa output may fall to 420,000 T
SINGAPORE, July 4 (Reuters) - Indonesia, the world's third-largest cocoa producer, may see this year's output fall to its lowest since at least 2004 at 420,000 tonnes due to erratic weather and a fungal disease, the Indonesian Cocoa Association (Askindo) said on Monday.
Concerns about supply from Indonesia, which accounts for 10 percent of global output, could offer support for New York cocoa futures , which have dropped from a 32-year peak hit in March partly due to the return of peace in top grower Ivory Coast.

Oil Trades Near $95 in New York After Greek Loan; IEA Sales ‘Successful’ (Source: Bloomberg)
Oil traded near $95 a barrel in New York, after advancing 4.2 percent last week, as most European stocks climbed after officials approved an aid payment to Greece to prevent a default. Futures were little changed today after climbing the most in almost three months last week. The Stoxx Europe 600 Index added 0.2 percent as more than two stocks gained for every one that fell. U.S. markets were closed for the Independence Day holiday. The sale of U.S. emergency crude oil reserves as part of a stockpile release program has been “very successful,” the International Energy Agency said.

Zambia coal power plant construction to start in 2011
LUSAKA, July 2 (Reuters) - Singapore's Nava Bharat Pte plans to start construction of a 300 megawatt (MW) coal-fired power plant in Zambia by the end of 2011 and complete it by 2014, company director Ashwin Devineni said on Saturday.
"We have finalised the detailed layout of the power plant initially for 300 MW and later for an additional 300 MW," Devineni said in a statement.

Euro Coal-Indians buy more S.African prompt cargoes
LONDON, July 1 (Reuters) - Prompt European physical coal values were stable again on Friday despite a lack of buying interest from utilities.
Visible bids, offers and trades at prices little changed from earlier this week give the impression the market is steady but weak demand ought to trim a few dollars from prices, utilities and traders said.

U.S. coal use unchanged from previous week-Genscape
HOUSTON, July 1 (Reuters) - U.S. coal consumption was unchanged in the past week, Genscape said Friday, as weather, nuclear plant restarts and low gas prices cut demand for coal-fired power.
Use of coal for the week ended Thursday fell 8 percent from the same week in 2010, the power industry data monitor said. Natural gas prices are lower than the same week last year.

Huge rare earth deposits found in Pacific -Japan experts
TOKYO, July 4 (Reuters) - Vast deposits of rare earth minerals, crucial in making high-tech electronics products, have been found on the floor of the Pacific Ocean and can be readily extracted, Japanese scientists said on Monday.
"The deposits have a heavy concentration of rare earths. Just one square kilometre (0.4 square mile) of deposits will be able to provide one-fifth of the current global annual consumption," said Yasuhiro Kato, an associate professor of earth science at the University of Tokyo.

Philippines says can ship more nickel to China
MANILA, July 4 (Reuters) - The Philippines has a strong potential to increase its nickel exports to China as an initial study showed high-iron, low-nickel laterite ores produced locally can be converted into marketable iron products, the Mines and Geosciences Bureau (MGB) said on Monday.
The Southeast Asian country, which exports most of its nickel output to China, was the world's third-biggest producer of nickel ore last year, behind Russia and Indonesia.

Iron Ore-Shanghai rebar hits near 3-week top, gains seen capped
SINGAPORE, July 4 (Reuters) - Shanghai steel futures rose more than 1 percent to their highest in nearly three weeks on Monday, chasing gains in Chinese equities, even as the outlook for steel demand remained bleak.
The most briskly traded October rebar contract on the Shanghai Futures Exchange  rose 1.4 percent to close 4,792 yuan per tonne, just off the day's peak of 4,798 yuan, its highest since June 15.

Speculators cut gold, silver net length, up copper
NEW YORK, July 1 (Reuters) - Managed money sharply cut their bullish bets in COMEX gold futures and options, as bullion prices tumbled 3 percent during the period, futures regulator Commodity Futures Trading Commission data showed Friday.
Speculators in silver futures and options also slashed their net long positions in the week ended June 28, as metals prices fell along with weak energy and commodity prices, according to the latest report from the U.S. regulator.

METALS-Copper up on positive market sentiment
London Jun 6 (Reuters) - Copper rose to its highest in more than two months on Monday as market sentiment improved after data last week showed U.S. manufacturing grew at a surprisingly strong pace in June, easing concerns over an economic slowdown.
Benchmark copper on the London Metal Exchange  rose 1.41 percent to $9,483.50 a tonne by 0915 GMT from $9,435 a tonne at the close on Friday.

PRECIOUS-Gold up 0.5 pct as weak dollar fuels bargain hunting
LONDON, July 4 (Reuters) - Gold prices rose 0.5 percent in Europe on Monday, supported by a rebound in the euro versus the dollar, and as investors took advantage of the metal's dip to six-week lows last week to buy into the market.
Comments from Standard & Poor's that Greece would likely be in default if it follows a debt rollover plan pushed by French banks also stoked lingering concerns over the stability of the euro zone.

Gold Gains on Buying After Drop to Lowest Price in Six Weeks, Lower Dollar (Source: Bloomberg)
Gold gained for the first time in three days in London as some investors bought the metal after its drop to a six-week low and as a weaker dollar spurred demand for an alternative asset. The dollar was little changed after earlier today touching a three-week low versus the euro on speculation the European Central Bank will raise interest rates this week. European finance ministers on July 2 authorized an 8.7 billion-euro ($12.6 billion) loan payout to Greece by mid-July after the nation’s parliament passed austerity measures.

LONDON, July 1 (Reuters) - Enquiry to store crude oil on tankers at sea in the U.S. Gulf is rising, although actual bookings have yet to be finalised, shipping and trade sources said on Friday.
While speculation has been growing in the past three days about potential floating storage deals, the U.S. Department of Energy on Friday listed what it termed as the "apparently successful" bidders for 30 million barrels of crude that it will release from the Strategic Petroleum Reserve (SPR) over the next month.

LONDON, June 29 (Reuters) - Confidence in the shipping industry has fallen to its lowest level in two years as vessel oversupply issues and rising bunker fuel costs have taken their toll, a survey showed on Wednesday.
The latest quarterly shipping survey by accountancy and advisory firm Moore Stephens for the period to the end of May 2011 showed confidence in the sector had fallen for the fourth successive quarter and was at its lowest since May 2009.

SHANGHAI, June 29 (Reuters) - The Shanghai Shipping Freight Exchange Co (SSEFC) has launched China's first forward freight container contract, allowing local exporters and shipping companies to manage growing volatility in freight rates.
The forward contracts are based on shipping rates for the China-Western America route and the China-Europe route, it said on its website on Wednesday.

SINGAPORE, June 17 (Reuters) - Maersk Line, the world's top container shipping firm, sees double-digit growth for its Asian shipments of palm oil, sugar and rice to Africa this year as demand for food commodities surges in frontier markets, an executive said on Friday.
Maersk , France's CMA CGM, Japan's Nippon Yusen Kaisha , and other top shipping companies have introduced either new African-bound trade routes or added ships to already established lines this year to take advantage of growth in the region.

Baltic index firmer, Russia grains trade watched
LONDON, July 1 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned positive on Friday,  with the market watching Russian grains exports after a ban was lifted.
The overall index rose 0.64 percent or 9 points to 1,422 points after falling for three sessions previously. Prior to the drop, it had risen for four sessions. The index has declined over 20 percent this year.

20110705 1008 Global Market Related News.

DJIA chart reading : upside biased with possible pullback correction.

Hang Seng chart reading : side way range bound.

Stocks at 4-1/2 week high as risk back in favour
LONDON, July 4 (Reuters) - World stocks hit a 4-1/2 week high and oil rose as investors grew confident over the prospects for the global economy after Greece avoided an early default on its sovereign debt and on signs China's economy is unlikely to make a hard landing.
"Greece was always going to be a sticking point and this issue of debt rollover and rating agencies views will be something that the market will keep an eye out for," said Jeremy Stretch, head of currency strategy at CIBC World Markets.

Asian Stocks Climb, Led by Raw Material Producers (Source: Bloomberg)
Most Asian stocks advanced, driving the regional benchmark index higher for a sixth day, as raw material producers advanced after metal prices increased and amid optimism Greece will avoid a default. BHP Billiton Ltd. (BHP), the world’s largest mining company, advanced 0.7 percent in Sydney. Rio Tinto Group, the world’s second-largest mining company by sales, climbed 0.4 percent. Japanese shares swung between gains and losses as the country prepared to release its second post-earthquake emergency budget. 77 Bank Ltd., a Japanese lender in the Tohoku region, advanced 2.5 percent after Nomura Holdings Inc. said it was bullish on regional banks.

Emerging-Markets Stock Index Climbs to Two-Month High; Bovespa Advances (Source: Bloomberg)
Emerging-market stocks rose, driving the benchmark index to a two-month high, on speculation China will refrain from boosting interest rates and as Morgan Stanley recommended investors buy more developing-nation equities. The MSCI Emerging Markets Index climbed 1.1 percent to 1,169.49 at 5 p.m. New York time, closing at the highest level since May 4. Brazil’s benchmark Bovespa increased 0.8 percent to gain for a sixth day, the longest winning streak since April, as traders pared bets for higher borrowing costs in Brazil

Republicans May Take ‘Mini’ Debt-Ceiling Deal (Source: Bloomberg)
Republicans might accept a “mini” deal with the Obama administration on raising the debt limit, Senator John Cornyn of Texas, a Republican leader, said yesterday on “Fox News Sunday.” The idea may delay politically difficult decisions if it’s structured to postpone action on a larger package of spending cuts or revenue increases until after the 2012 election cycle, an analyst said. “What we’ve been calling for is to have a down payment that’s as big as possible,” Marc Goldwein, former associate director of President Barack Obama’s debt commission, said yesterday in an interview.

U.S. Home Prices Poised to Climb as Foreclosures Wane, HUD’s Donovan Says (Source: Bloomberg)
Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said. “It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”

U.S. manufacturing rises but consumers remain wary
NEW YORK, July 1 (Reuters) - The pace of growth in U.S. manufacturing picked up for the first time in four months in June, surprising investors and fueling optimism the recent economic slowdown will be temporary.
The picture that emerged from other data released on Friday, however, was less encouraging. Although lower gasoline prices helped temper the gloomy mood among consumers last month, their expectations on the economy remained bleak, according to a survey.

U.S. Stocks Surge Most Since July 2009 on Greece, Manufacturing Report (Source: Bloomberg)
U.S. stocks posted the biggest weekly rally in two years, with the Dow Jones Industrial Average rising 648 points, after Greece took action to avoid a default, Nike Inc. (NKE)’s earnings topped analyst estimates and U.S. manufacturing growth rebounded. Caterpillar Inc. (CAT), United Technologies Corp. (UTX) and 3M Co. (MMM) jumped at least 6.3 percent, pacing gains among companies most- dependent on economic growth. Nike, the world’s largest sporting-goods company, climbed 13 percent. Visa Inc. (V) surged 20 percent, the most in the Standard & Poor’s 500 Index, as the Federal Reserve moved to set a less-severe limit on debit-card swipe fees than previously proposed.

VIX Falls Most in Three Months as Stocks Rally, Concern Over Greece Eases (Source: Bloomberg)
The benchmark index for U.S. stock options decreased the most in three months as stocks rallied amid optimism Greece will contain its debt crisis and a rebound in U.S. manufacturing. Europe’s VStoxx slumped. The VIX, as the Chicago Board Options Exchange Volatility Index is known, fell 25 percent this week to 15.87 as of 4:15 p.m. in New York. Earlier, it dropped to 15.12, the lowest intraday level since May 2. The index measures the cost of using options as insurance against declines in the Standard & Poor’s 500 Index, which climbed 1.4 percent today for its fifth straight advance. August VIX futures fell 4 percent to 18.

China Non-Manufacturing Index Slumps in June, Adding to Slowdown Concerns (Source: Bloomberg)
China’s non-manufacturing industries expanded at the slowest pace in four months in June, sending stocks higher on speculation the government may ease monetary tightening policies aimed at taming inflation. A purchasing managers’ index dropped to 57 from 61.9 in May, the China Federation of Logistics and Purchasing said on its website yesterday. A reading above 50 indicates expansion.

South Korea’s Won Trades Near Three-Year High; Bonds Advance on Inflows (Source: Bloomberg)
South Korea’s won traded near a three-year high on speculation policy makers will favor appreciation to help tame inflation. Government bonds rose after foreigners added to their holdings for a fifth month in June.

Japanese Stocks Are Little Changed After Five-Day Rally; Tepco Climbs (Source: Bloomberg)
Japanese stocks were little changed after a five-day rally that pushed the Nikkei 225 Stock Average to its highest level in two months. Tokyo Electric Power Co. climbed. The Nikkei 225 was little changed at 9,9969.66 as of 9:09 a.m. in Tokyo. The broader Topix rose 0.1 percent to 865.16, with equal numbers of stocks rising and falling.

Euro Trades Near Three-Week High as ECB Seen Tightening Faster Than Fed (Source: Bloomberg)
The euro was 0.3 percent from a three-week high against the dollar on speculation the European Central Bank will continue to lead its U.S. counterpart in monetary tightening. The euro was 0.2 percent from a four-week high against the yen on prospects the ECB will raise interest rates on July 7 even as concerns about debt-stricken Greece linger. Data this week are forecast to show U.S. employers expanded payrolls at a pace that failed to reduce the jobless rate, adding to bets the Federal Reserve will keep interest rates near zero for longer. New Zealand’s dollar climbed to a record after a report showed business confidence in the nation rebounded in the second quarter.

Greek Rescue Effort by Europe May Earn the Country Default Rating From S&P (Source: Bloomberg)
Europe’s effort to pull Greece back from the brink may result in a default rating by Standard & Poor’s, exposing a critical flaw in the drive to press creditors to assume a share of the bailout cost. Standard & Poor’s said today a rollover plan serving as the basis for talks between investors and governments would qualify as a distressed exchange and prompt a “selective default” grade. That may leave the bondholders unwilling to complete the transaction and the European Central Bank unable to accept Greek government debt as collateral, impairing the lifeline it has provided the country’s banks.

Greece Buys Time as Euro Ministers Press Investor Talks to Wrap Up Bailout (Source: Bloomberg)
Europe pulled Greece back from the brink of default, gaining time to hammer out a formula for ending the debt crisis. European finance ministers authorized an 8.7 billion- euro ($12.6 billion) loan payout to Greece by mid-July, basing a second three-year bailout package on talks to corral banks into maintaining their Greek debt holdings. A proposed debt rollover plan for Greece may still put the country in “effective default,” Standard & Poor’s said today.

S&P warning sows new uncertainty on Greek rescue
ATHENS, July 4 (Reuters) - Credit ratings agency Standard & Poor's cast new uncertainty on Monday over euro zone efforts to rescue debt-crippled Greece by warning it would treat a French bank plan for a rollover of privately-held debt as a default.
The threat abruptly ended a relief rally in stock and bond markets after Greece adopted a new, tougher austerity plan last week, prompting euro zone finance ministers to agree on Saturday to throw Athens a 12 billion euro short-term lifeline.

Cameron Presses on With U.K. Budget Cuts as Consumers Suffer, Stores Close (Source: Bloomberg)
Prime Minister David Cameron’s refusal to compromise on the most ambitious fiscal squeeze since World War II is testing Britain’s recovery as consumers lose faith in the economy. As he implements six years of spending cuts -- no postwar British government has managed more than two -- Britons’ confidence is waning and inflation is accelerating. Manufacturing and construction growth slowed in June and data today will probably show services also cooled last month.

Germany Raises Annual Borrowing Targets More Than 10% on Costs of Bailout (Source: Bloomberg)
German Chancellor Angela Merkel’s government raised borrowing targets by more than 10 percent for the three years through 2015 after pledging contributions to a future European bailout fund, its multi-year budget plan shows. Borrowing will amount to 24.9 billion euros ($36.2 billion) in 2013, more than the 22.3 billion euros the Cabinet endorsed on March 16, according to the 2013-2015 budget plan drafted by the Finance Ministry. The government aims to borrow 18.7 billion euros in 2014 and 14.7 billion euros in 2015, up from 15.3 billion euros and 13.3 billion euros, respectively.

Thailand’s Yingluck May Spur Prices, Baht in ‘Double Whammy’ for Exporters (Source: Bloomberg)
Efforts by Thailand’s incoming government to boost growth and lift incomes may accelerate inflation, forcing interest rates higher and increasing business costs even as a strengthening currency threatens exports. The Bank of Thailand is assessing the economic effect of policies that may be implemented by the Pheu Thai party after it won the July 3 election, Director Mathee Supapongse said. Pheu Thai, which is assembling a five-party coalition that would hold 299 seats in the 500-member parliament, campaigned on pledges to raise the minimum wage and guarantee rice prices for farmers.

Yingluck Forms Five-Party Coalition to Widen Mandate After Voting Success (Source: Bloomberg)
Yingluck Shinawatra, set to become Thailand’s first female prime minister, announced the formation of a five-party coalition to broaden the mandate she won in elections and head off concerns that violence might erupt over the fate of her exiled brother, ex-premier Thaksin Shinawatra. Yingluck called for “unity and reconciliation” at a press conference in Bangkok, where she announced the 299-seat coalition. Thaksin, who was ousted in a 2006 coup, earlier told reporters in Dubai that he had no immediate plans to return.

FOREX-Euro off 1-mth high vs dlr on S&P's warning of Greece
LONDON, July 4 (Reuters) - The euro eased from one-month highs against the dollar after Standard & Poor's said a debt rollover plan being considered for Greece may put the country into selective default, although solid support at lower levels is likely to check losses.
The euro had hit a one-month high of $1.4580 earlier on Monday, as near-term worries that Greece may default and contagion risks eased. On Saturday, euro zone finance ministers approved a 12 billion euro loan that Greece needed to avert default, but the country still needs another rescue package expected to total around 110 billion euros.

20110705 1006 Palm Oil Related News.

Palm oil tracks crude higher, further downside risk
JAKARTA, July 4 (Reuters) - Malaysian palm oil futures bounced back from a  low last hit in October last year in the previous session as firm crude prices supported, although investors expect further weakness due to a higher output cycle in the second half.
"The market today is pretty firm," said one trader, adding the longer-term outlook looked patchy. "Everybody sees the second half (of 2011) as a bit bad, but it will depend on the macro economy. If we have any supply problems then the market will stay put."

India's rapeseed meal exports may fall on China quality worry
NEW DELHI, July 1 (Reuters) - Indian rapeseed meal exports could fall after its biggest buyer China raised quality concerns over its shipments and the fate of two Indian cargoes of about 30,000 tonnes hung in the balance as Chinese officials inspected them for a hazardous chemical.
More than half of India's 936,238 tonne of rapeseed meal exports went to China in 2010/11, but that figure could come down if the issue over quality was not resolved soon, Indian traders said on Friday.