20110114 1809 FCPO EOD Daily Chart Study.

FCPO closed : 3680, changed : -14 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : falling, seller holding on.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
FCPO sliped lower recorded small loss after yesterday rebound with lesser volume changed hand ahead of next Monday export data while soy oil futures price continue to eased lower after last 2 days rally.
Daily chart formed a down doji bar candle with longer upper shadow after market opened lower, recovered tested higher resistant level near middle Bollinger band but face heavy selling pressure pressed price to closed near the low of the day. Reading continue to call for a side way range bound market development testing support and resistant 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.

20110114 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1573 changed : +1 point,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing exposure.
Support : 1570, 1560, 1550 level.
Resistance : 1580, 1590, 1600 level.
Comment :
FKLI closed 2 ticks higher with quiet volume transacted after while regional market ended mixed.
Daily chart formed a doji bar candle after market traded range bound in a 10 point range market Reading wise remain unchanged with correction side way range bound upside biased market development.
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.

20110114 1002 Global Economics Related News.

Global: World Bank sees capital-flow risks, 3.3% growth in 2011. Capital inflows, a driving force of the recovery in emerging countries, now pose risks to global growth as they can trigger abrupt currency fluctuations that may do "lasting damage" to some nations, the World Bank said. The Washington-based institution left a growth forecast for the worlds economy this year unchanged at 3.3%, from a revised 3.9% in 2010. It predicted that the slowdown, which reflects capacity constraints in developing nations and restructuring in developed economies, will be followed by faster growth of 3.6% in 2012. (Source: Bloomberg)

U.S: Initial jobless claims rose last week to 445,000. The number of first-time claims for unemployment insurance payments jumped in the first week of 2011 to the highest level since October as more Americans lined up to file following the holidays. Initial jobless claims rose by 35,000 to 445,000, according to Labor Department data. The average number of applications over the past four weeks, a less-volatile gauge, increased to 416,500. (Source: Bloomberg)

U.S: Producer prices increased 1.1% MoM in December, led by higher prices for commodities such as fuel and food. The so-called core measure, which excludes volatile food and energy costs, climbed 0.2% MoM, in line with estimates. (Source: Bloomberg)

U.K: Manufacturing rose more than economists forecast in November. Factory output rose 0.6% MoM from October, when it also increased at the same pace. Overall industrial output rose 0.4% MoM in November. (Source: Bloomberg)

Spain: Sells top target in first debt auction of 2011. Spain sold EUR 3b (USD 3.95b) of bonds in its first debt auction of the year, meeting its maximum target as demand increased. The Treasury sold the five-year bonds at an average yield of 4.542%, the Bank of Spain said, compared with 3.576% the last time the securities were auctioned on Nov. 4. Similar-maturity bonds traded at a yield of 4.630% before the auction and demand was 2.1 times the amount sold compared with 1.6 times at the previous sale. (Source: Bloomberg)

China: Will allow companies to invest overseas in Yuan in the latest move to expand the currency's international role and curb dependence on the dollar. The new rules will cover non-financial companies in places where a Yuan trade settlement program is taking place, the People's Bank of China said on its website. (Source: Bloomberg)

India: Food inflation slowed for the first time in six weeks after Prime Minister Manmohan Singh's government banned onion exports and supplies of potatoes and lentils improved from fresh harvests. An index measuring wholesale prices of farm products including milk and lentils rose 16.91% YoY in the week ended Jan. 1. The gauge gained 18.32% YoY the previous week. (Source: Bloomberg)

Singapore: Plans more housing curbs as prices rise to record. Singapore will raise down payment requirements for second mortgages and extend the period homeowners must hold properties to avoid a sales tax as it steps up efforts to curb speculation after prices rose to a record. Individuals with more than one mortgage can only borrow up to 60% of a property's value, down from 70%, the government said in a statement. On loans to entities other than individuals it will be reduced to 50% from 60%. Sellers will now have to pay a stamp duty for all homes and land sold within four years of purchase, from three years. (Source: Bloomberg)

Thailand: Consumer confidence rose for the first time in three months in December as the baht eased from a 13-year high and exports grew. An index measuring sentiment climbed to 71.9 last month from 70.3 in November, the University of the Thai Chamber of Commerce said in a statement in Bangkok. (Source: Bloomberg)

Australia: December employment growth misses estimates as a stronger currency and higher borrowing costs slowed the economy. The number of people employed rosed by 2,300 from November, the statistics bureau said in Sydney. The jobless rate fell to 5%, the lowest since January 2009, from 5.2% a month earlier partly because some people stopped looking for work. (Source: Bloomberg)

South Korea: Rate rise boosts won pressure as Lee battles inflation
South Korea’s third interest-rate increase since the global financial crisis and the government’s planned price controls may fail to curb inflation unless the won appreciates further, paring the cost of imported goods. The Bank of Korea raised borrowing costs by a quarter of a percentage point to 2.75% and the government said it aims to freeze utility prices and reduce food tariffs to damp quickening inflation. While the won rose to a twomonth high against the dollar after the rate increase, the currency’s climb over the past year is the weakest in Asia outside Hong Kong, which operates a peg to the greenback. (Bloomberg)

China: Inflation may ease pressure on yuan at Hu-Obama summit
Rising inflation in China that is causing headaches for President Hu Jintao at home may help relieve tensions with the US over the yuan as he prepares to meet President Barack Obama in Washington next week. Prices are climbing faster in China than in the US, making Chinese goods less competitive, Treasury Secretary Timothy F. Geithner said. Chinese officials may also seek to speed up gains in the currency, also known as the renminbi, to fight inflation, lowering the cost of imported US goods such as Boeing Co. aircraft and Microsoft Corp. software. (Bloomberg)

India: To Import onions from Pakistan as inflation set to climb
India will import 1,000 tonnes of onions and kept a ban on export of edible oils and lentils to cool prices, ahead of a report that may show inflation accelerated last month. The benchmark wholesale-price index probably gained 8.4% in December 2010, the median forecast of 30 economists in a Bloomberg News survey showed. The gauge rose 7.48% the previous month. (Bloomberg)

UK: BOE holds stimulus as Cameron’s spending squeeze looms
The Bank of England maintained emergency stimulus for the economy as officials judged Prime Minister David Cameron’s spending squeeze this year will help tame the fastest inflation since he took office. The nine-member Monetary Policy Committee, led by Governor Mervyn King, held its bond plan at GBP200bn (USD315bn) as forecast by all 39 economists in a Bloomberg News survey. The bank left its main interest rate at a record low of 0.5% as forecast by all 61 economists in a separate poll. (Bloomberg)

EU: ECB keeps rate at 1% as crisis tests monetary policy
The European Central Bank kept interest rates at a record low as the sovereign debt crisis widens economic divergences within the euro area, straining the bank’s one-size-fits all monetary policy. The ECB’s Governing Council set the benchmark rate at 1% for the 21st month, as predicted by all 53 economists in a Bloomberg News survey. (Bloomberg)

US: Trade deficit unexpectedly decreases
The US trade deficit unexpectedly shrank in November as growing global demand and a weaker dollar help boost overseas sales of everything from aircraft to cotton. The gap shrank 0.3% to USD38.3bn, the smallest in 10 months, as exports climbed to the highest level in more than two years, according to data from the Commerce Department in Washington. Other reports showed increases in claims for jobless benefits and wholesale prices. (Bloomberg)

20110114 1001 Malaysia Corporate Related News.

Maybank: Ringgit loans for British properties. Malayan Banking Bhd (Maybank) expects its Overseas Mortgage Loan Scheme, the bank's first ringgit-denominated mortgage facility for property purchase in Britain, to boost its home financing division. With the new product, the division is expected to grow more than 13% in its current financial year ending June 30, 2011. The mortgage was designed for high net worth customers interested in buying properties in Britain due to the favourable currency exchange rate. (Source: The Star)

Property: Good outlook despite soft rental market for property. The overall property sector is expected to enjoy an uptrend this year, buoyed by the various economic transformation programmes despite a soft market in the rental of high-end condominiums. Average prices in the secondary high-end condominium market fell by 29% between the second quarter of 2008 and the second quarter of 2009 but this sub-segment of the residential market had been on the uptrend since the third quarter of 2010, increasing by 13%. (Source: The Star)

Airlines: Airfares may go up, low cost carrier terminal in Perak. Local airlines may increase air fares or fuel surcharges should their regional peers do so as jet fuel prices continue to trend upwards. As crude oil prices continued to trade above USD90 per barrel, aviation jet fuel price for this week was quoted at USD106.3 per barrel, based on the International Air Transport Association's website. Separately, a low-cost carrier terminal (LCCT) may be built in Perak to fuel its economic growth and development of the Northern Corridor Economic Region (NCER). (Source: The Star, The Edge Financial Daily)

O&G: Santos-Petronas USD16b GLNG project gets nod. The Gladstone Liquefied Natural Gas (GLNG), a joint venture between Petroliam Nasional Bhd (Petronas), Santos, Total SA and Kogas have approved the development of the USD16b (RM48.8b) project in Queensland. Santos owns 30% of GLNG, while Petroliam Nasional Bhd (Petronas) and Total SA own 27.5% respectively and Korean Gas Corp (Kogas) owns 15%. Major works would begin for upstream field development, pipeline and LNG plant facilities. (Source: The Edge Financial Daily)      

Suria Capital unit and partners bag RM1bn job
Suria Capital Holdings’ wholly-owned subsidiary, SCHB Engineering Services SB and its consortium partners, have been awarded a RM1bn engineering, procurement, construction and commissioning (EPCC) contract for a power plant project in Sabah. The contract from Kimanis Power SB involves the construction of a 300MW combined-cycle gas turbine gas-fired power plant project in Kimanis, Sabah, Suria Capital told Bursa Malaysia yesterday. The construction period is three years. SCHB's consortium partners include CTCI Corp, CTCI Overseas Corp Ltd, CTCI Malaysia SB and Steamline (M) SB. Kimanis Power SB is a 60:40 joint venture between Petronas Gas (PetGas) and NRG Consortium SB, the business arm of Yayasan Sabah Group. (StarBiz)

Perak may have its own LCCT, says MB
The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state. "We have had a few discussions with AirAsia on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir said yesterday. The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project. (BT)

JCorp plans group-wide transformation
Johor Corp (JCorp) will undergo a group-wide transformation programme which will be implemented in phases over the next few years. JCorp president and chief executive officer Kamaruzzaman Abu Kassim said it was focusing on enhancing its core businesses to bring the state agency to the next level. "The immediate task now is to resolve the debt of RM3.6bn that comes due in mid-2012 and we have identified the means of achieving this," Kamaruzzaman said in a statement yesterday. JCorp has appointed CIMB Bank and Maybank Investment Bhd as advisers for the restructuring. The banks are also the biggest lenders to JCorp. (BT)

Approval in writing for Langat 2 plant pending
The Selangor government had in December promised to allow the federal government to build the Langat 2 water treatment plant, which is part of the Pahang-Selangor Interstate Water Transfer Project. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said his ministry, however, was still waiting for the approval in writing from the state government, which was expected to be received this month. “Although we are seven months late, the state government's latest decision means that we can proceed. And we are going ahead with the tender this month or by February. The approval means the last hurdle has been removed,” he said after meeting with the ministry's officers and staff, here yesterday. (StarBiz)

Sime to launch 15 property projects
Sime Darby, through Sime Darby Property, will be launching 15 projects across 10 townships in the first half of this year. Its head of marketing development, Henri Young said, the townships include Putra Heights and USJ Heights in Subang Jaya, Denai Alam (Shah Alam) and Bandar Bukit Raja (Klang). "There is still strong demand for landed and residential properties in Malaysia," he said yesterday. He said the company's previous projects in Denai Alam, Bandar Bukit Raja and the USJ Heights townships were sold out within two months. (BT)

20110114 0900 Global Market Related News.

Oil eases towards $91 on disappointing US data, OPEC
SINGAPORE, Jan 14 (Reuters) - Oil eased,  pressured by disappointing U.S. economic data and the prospect  OPEC would raise output should prices break above $100 a  barrel for an extended period.
U.S. jobless claims hit a 10-week high last week while producer prices shot up in December, pointing to headwinds for an economy that Federal Reserve Chairman Ben Bernanke said was showing fresh vigor.

COMMODITIES: US corn lifted on supply concern; oil, metal fall
NEW YORK, Jan 13 (Reuters) - U.S. corn and soybean futures rallied to 2-1/2-year highs on Thursday as signs of tightening global supplies boosted prices for a second day, while demand concerns hit oil and metals prices.
"USDA's numbers yesterday, in soybeans in particular, but also in the corn, were surprisingly bullish and presented an alarming supply situation that is now fueling these price gains," said Mario Balletto, analyst with Citigroup.

GLOBAL MARKETS: Euro has best day in six months, US stocks fall
NEW YORK, Jan 13 (Reuters) - The euro surged on Thursday, taking on renewed vigor after better-than-forecast debt auctions by Spain and Italy and a hawkish rate view from the ECB but weak U.S. jobless claims data weighed on U.S. stocks.
"He sent a mild warning to markets that the ECB's assessment on interest rates could change," said Commerzbank economist Michael Schubert.

Alaska to shut oil pipe this weekend for bypass
NEW YORK, Jan 13 (Reuters) - Alaska's main oil pipeline will shut for 36 hours over the weekend to install a bypass aimed at restoring oil shipments to full volumes after the line was shut following a leak last week, its operator said on Thursday.
Crude flow was 320,000 barrels per day on Thursday, about half of normal levels, after operator Alyeska partially resumed shipments earlier this week. The rate fell from a previous 400,000 bpd on Wednesday, as the pipeline drew less oil from storage tanks along its trajectory, said spokeswoman Stefani Bell.

Alaska pipeline throughput falls to 320,000 bpd
ANCHORAGE/NEW YORK, Jan 13 (Reuters) - Throughput of crude on the Trans Alaska Pipeline System fell to 320,000 barrels per day on Thursday, down from 400,000 bpd on Wednesday, said Stefani Bell, a member of the Joint Information Command responding to an oil leak last week on the 800-mile (1,287 km) line.
The drop in throughput from Wednesday's levels came as TAPS drew less crude from storage tanks along the line.

India Panel Recommends Steps To Implement Food Security Bill (Source: CME)
An expert panel on India's proposed Food Security Bill recommended delivering subsidized food grains to the poorest of population in a manner that won't derail the government from attaining its broad fiscal goals. A committee headed by C. Rangarajan, chairman of the prime minister's Economic Advisory Council, proposed assured delivery of wheat at INR2 a kilogram and that of rice at INR3 a kilogram to 46% of rural and 28% of urban population. "The total food grain requirement for the entitled population, buffer stocks and other welfare programs which are treated as mandatory will be 50.96 million tons in 2011 and 51.93 million tons in 2014," the panel said. The government is pushing for a law to subsidize grains to partly shield its voter base from surging inflation in a country where about 40% of the 1.2 billion population lives at $2 a day.
India already provides cheap grains and pulses to nearly 180 million poor or low-income families through a public distribution system that will cost nearly $12 billion in the year through March 2011, accounting for about 1% of gross domestic product and 5% of total government spending.

World commodity prices poised to gain on rising yuan
SINGAPORE, Jan 13 (Reuters) - Beijing's moves to control inflation and trim its trade surplus by allowing the yuan to  strengthen could boost China's commodity imports and lift  global prices, but would likely have little impact on domestic  prices.
China is one of the top consumers of many commodities  including oil, iron ore, copper and soy, and a rise in the  Middle Kingdom's purchasing power would allow it to import  more for the same amount of yuan -- if international prices  are stable.

Fed sees somewhat brighter outlook for U.S. jobs
WASHINGTON, Jan 12 (Reuters) - The battered U.S. labor market may finally be looking up, according to a report from the Federal Reserve that found modestly better job conditions across the country.
The Fed's Beige Book, based on anecdotal reports from the business contacts of the central bank's regional branches, painted an increasingly bright, if cautious, picture.

Japan Nov core machinery orders fall 3.0 pct mth/mth
TOKYO, Jan 13 (Reuters) - Japan's core machinery orders unexpectedly fell 3.0 percent in November from the previous month, down for the third straight month, Cabinet Office data showed on Thursday, in a sign companies are putting off capital spending due to an uncertain economic outlook.
The fall in core orders, a highly volatile data series regarded as a leading indicator of capital spending, compared with the median estimate for a 2.0 percent increase and follows a 1.4 percent drop in October.

S.Korea steps up inflation battle, raises rates
SEOUL, Jan 13 (Reuters) - South Korea raised interest  rates on Thursday, surprising markets, and unveiled a set of  measures to contain mounting inflation as policymakers around  the world battle a surge in prices of food and other  commodities.
Bond prices fell as the rate move prompted traders to  price in more tightening by the central back this year than  they had earlier expected. A majority of analysts in a Reuters  survey had believed the central bank would leave rates  unchanged on Thursday but hike them next month.

PRECIOUS-Gold sags as euro zone debt fears recede
LONDON, Jan 13 (Reuters) - Gold fell on Thursday, pulling back from the previous session's one-week highs, as a series of successful euro zone bond auctions erased some safe-haven demand for the metal, although consumer demand remained fairly buoyant.
Palladium nudged at 10-year highs above $800 an ounce, having risen by 8 percent so far this week, driven by expectations of faster global growth, stable investment demand and optimism stemming from the Detroit auto show.

FOREX-Euro edges up after strong Spanish auction
LONDON, Jan 13 (Reuters) - The euro hit a one-month high against the Swiss franc and edged up versus the dollar on Thursday as speculation that measures to tame the euro zone debt crisis may be on their way prompted short covering.
The euro briefly nudged up to the day's high versus the dollar after strong demand at a Spanish government bond auction cooled speculation that debt problems plaguing Greece, Ireland and Portugal will spread to Madrid and beyond.

U.S. corn climbs to 2-½ year high on supply squeeze
SINGAPORE/MADRID, Jan 13 (Reuters) - Chicago corn rose to 2-½ year peaks after a surprisingly sharp cut in U.S. government forecasts for global supply of grains, and soybeans were steady after strong gains in the previous session.
"It is the question of seeing new highs from here as things are tightening in the U.S. and they are going to tighten up supplies across the world," said Adam Davis, a senior commodity analyst at Merricks Capital, a Melbourne-based funds manager that invests in agriculture.

World stocks at 28-month high, bond sales smooth
LONDON, Jan 13 (Reuters) - World stocks climbed to a new 28-month high despite weakness in Europe while the euro held on to the previous session's gains as bond auctions in Spain and Italy went without a hitch.
"It's been successful, the most positive has been reaching the top end of the objective and the bid-to-cover ratio of 2.1 is higher than the previous auction," said Soledad Pellon, an analyst at IG Markets.

Argentine farmers call strike over export policies
BUENOS AIRES, Jan 12 (Reuters) - Argentine farmers will halt grains sales next week to protest government curbs on wheat and corn exports, reviving a conflict that helped lift global prices to record highs in 2008.
Growers in the South American country, a leading source of grains and beef, have been at odds with center-left President Cristina Fernandez for years over export restrictions that they say drive down prices in the local market.

20110114 0859 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soymeal higher on lingering concerns about the future supply of soybeans for crushing, while soyoil drifted lower in step with stumbling crude oil futures. CBOT March soyoil ended 0.16 cents or 0.3% lower at 57.71 cents per pound, and March soymeal traded $2.10 or 0.6% higher at $383.60 a short ton. (Source: CME)

Palm bounces on USDA report showing tight oilseed supply
KUALA LUMPUR, Jan 13 (Reuters) - Malaysian crude palm oil  bounced from three-week lows hit the previous day  after key report showed a deeper-than-expected cut for U.S.  soy stocks, signalling food demand was still strong
"The palm oil market has stopped its correction for the  moment. It remains to be seen if this signals the start of a  new rally or a pause before the market retraces again," said a  trader with a foreign commodities brokerage.

Argentina sees soy below 50 mln T, wheat 14 mln T
BUENOS AIRES, Jan 12 (Reuters) - Argentina's government sees 2010/11 soybean production coming in below 50 million tonnes, down from a previous estimate of 52 million tonnes, as dry conditions take a toll on the crop, Agriculture Deputy Secretary Oscar Solis said on Wednesday,
Asked whether soy output would fall below 50 million tonnes, Solis said "for certain." But he did not give a specific forecast, saying it was too early to know how dry conditions would impact soy yields. 

20110113 1855 FCPO EOD Daily Chart Study.

FCPO closed : 3694, changed : +44 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : falling, seller staying.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Technical rebound FCPO recorded gained with improving volume participation after 4 days of fall while overnight soy oil rallied to closed significantly higher after USDA data showing a lower than expected stock level.
Daily chart formed a down bar candle with lower shadow after market opened gap up, tested lower support level and recovered but still closed below middle Bollinger band resistance level while the reading still suggesting a side way range bound market development testing support and resistant 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.

20110113 1835 FKLI EOD Daily Chart Study.

FKLI closed : 1572 changed : - 1 point,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing exposure.
Support : 1570, 1560, 1550 level.
Resistance : 1580, 1590, 1600 level.
Comment :
FKLI ended marginally lower recorded small loss with weakening volume changed hand while regional market ended mostly higher.
Daily chart formed a small body down doji bar candle after market traded range bound with the reading remained suggesting a correction side way range bound upside biased market development.
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.

20110113 0924 Global Economics Related News.

Thailand: Bank of Thailand raises rates, cites inflation threat
Thailand’s central bank raised its benchmark interest rate by 25 basis points to 2.25% yesterday as expected and signaled further tightening to curb inflationary pressure as the economy grows. The central bank said Thailand’s economy, Southeast Asia’s second largest, would “grow robustly” in 2011 but it highlighted risks from inflation, which it has already said could breach its target at some stage this year. (Financial Daily)

Japan:Current-Account surplus shrank 16% in November
Japan’s current account surplus narrowed for the first time in three months in November after import growth accelerated. The gap shrank 15.7% from a year earlier to JPY926.2bn (USD11bn), the Ministry of Finance said. The median estimate of 24 economists surveyed by Bloomberg News was for a surplus of JPY972.5bn. Report reinforces economists’ view that Japan’s GDP shrank last quarter for the first time in more than a year. The export-dependent economy has been weakened by a 15% strengthening in the Yen in 2010 and cooler overseas demand as stimulus measures expire. (Bloomberg) India:

Industrial production expansion slows to 2.7%
India’s industrial production grew at the slowest pace in 18 months in November, a deceleration that may not prevent the central bank from raising interest rates this month as surging food prices drive up inflation. Output at factories, utilities and mines rose 2.7% from a year earlier, the government said in a statement in New Delhi, less than the revised 11.3% jump in October when the Hindu festivals of Dussehra and Diwali boosted demand for goods. The median estimate of 30 economists in a Bloomberg News survey was for a 6.6% gain. (Bloomberg)

Australia: Inflation Risk Seen in Tomato Price Jump
Reserve Bank of Australia Governor Glenn Stevens can glimpse the inflation threat he faces from the nation’s floods at the produce shop near his suburban Sydney home in Sylvania Waters. Tomato prices soared 20% in the past week and bananas, grapes and sweet potatoes are up 10%. The crisis may force the RBA to accept higher inflation in coming months as the floods spur food and commodity costs and slow growth in a disaster zone the size of Egypt. Australian inflation-linked bonds rallied the most in more than five years as the damage, along with future rebuilding in a country already near full employment, risked stoking consumer prices. (Bloomberg)

EU: Germany’s 2010 growth fastest since reunification
Germany’s economy rebounded last year at its fastest pace since reunification but consumer spending stayed modest, leaving analysts and other Eurozone states hoping a more balanced recovery would take hold this year. GDP grew by 3.6%, preliminary Federal Statistics Office data showed, bouncing back from a 4.7% slump – it’s steepest since World War II – in 2009. The figure matched the mid-range forecast in a Reuters poll of 22 economists. (Financial Daily)

US: Import prices in US rise 1.1%, led by fuels, food
The cost of goods imported into the US rose in December, led by higher prices for commodities such as fuels and food. The 1.1% increase in the import-price index followed a revised 1.5% gain in November, Labor Department figures showed. Economists projected a 1.2% gain for December, according to the median estimate in a Bloomberg News survey. Import prices climbed 0.3% excluding fuel, with little change in the costs of automobiles and consumer goods. Rising demand from emerging markets like China, along with a weaker dollar, is driving up the cost of commodities. With unemployment stuck above 9%, companies are finding limited scope to raise finished goods prices, allowing the Federal Reserve to complete a second round of monetary easing to stimulate the economy. (Bloomberg)

20110113 0922 Malaysia Corporate Related News.

SP Setia leads race for PICC deal
Property developer SP Setia has emerged as the leading contender to build the Penang International Convention Centre (PICC) on the grounds of the Penang International Sports Arena (Pisa). According to sources, SP Setia is likely to get a 30-year concession to build and operate the convention centre, which will include other components like a hotel and retail outlets. "The proposed project is likely to cost over RM200m," one source told Business Times yesterday. Another source said SP Setia is one of four companies which had responded to a request for proposal from the Penang state government. The Penang Island Municipal Council had closed the tender in September last year. (BT)

Karambunai's RM6.5b resort plan gets Sabah govt backing
An ambitious RM6.5bn plan to develop an integrated resort in Karambunai near Kota Kinabalu has received support from the Sabah government. The state cabinet gave its nod after a delegation led by Karambunai Corp president Tan Sri Dr Tsen Lip Keong provided a briefing on the project yesterday. Chief Minister Datuk Seri Musa Aman said the development could strengthen Sabah's position as a tourism hub in the region and provide employment opportunities. "According to the briefing, 20,000 to 50,000 jobs will be made available in the next 10 years. (BT)

Indonesia's Garuda seeks USD1.1 bln in IPO; pricing high
PT Garuda Indonesia, the nation's flag carrier, expects to raise up to USD1.1bn in an initial public offering next month that could be the country's second largest, though its valuation looked pricey versus peers. The government's offering for the state carrier is aimed at tapping a boom in investor interest in Indonesia, though stocks have slipped this year after a record rally in 2009 and Garuda's price range was set about 30% higher than expected. The government set the price range at 750-1,100 rupiah (USD0.083-USD0.122) per share, said Mustafa Abu Bakar, the state-owned enterprises minister. The firm has said that it will offer a 36.5% stake, or 9.362bn new and existing shares. Garuda's price range reflects 7.4 to 10.8 times its Enterprise Value (EV) to EBITDA, said Iman Rachman, head of investment banking at Mandiri Sekuritas, one of the local underwriters. That is higher than regional peers such as Singapore Airlines with an EV to EBITDA at 4.9 times, and Thai Airways at 5 times, according to data from Thomson Reuters' Starmine. (Reuters)

KLIA to see four new airlines touching down
Malaysia Airports is set to receive four new airlines flying into KL International (KLIA) in Sepang this year. MAHB marketing manager Mohamed Sallauddin Mohamed Shah said the airlines from the Middle East, India, and South Africa have expressed strong interest to fly into KLIA and some indicated plans to commence services during the summer and winter period. (Malaysian Reserve)

Faber’s Abu Dhabi deals not renewed
Faber Group subsidiary Faber Ltd Liability Co (FLLC) has received a letter from the Department of Municipal Affairs, Western Region Municipality, Abu Dhabi, for the non-renewal of three contracts with an estimated annual total contract worth RM184m. The contracts are for the provisions of civil, mechanical and electrical maintenance services for low-cost houses at Madinat Zayed and Liwa in Abu Dhabi. The services of FLLC for the contracts will cease with effect from 3 April and 1 June. The non-renewal of the contracts shall have an effect to the group's earnings and the net assets per share of approximately 4 sen for the financial year ending 31 Dec 2011. (StarBiz)

Naim to work with 2 Sabah groups on projects
The Sabah Oil and Gas Contractors Association (Sogca) and the National Malay Chambers of Commerce Sabah (MCCM) branch will form a consortium to undertake some of the works in the RM2.4bn oil and gas terminal project in Kimanis awarded to Naim Engineering SB by Petronas. This follows the signing of a memorandum of understanding in Kota Kinabalu yesterday between the three parties that will see Sarawakbased Naim Engineering setting aside 30% or RM800m worth of works under the project to SOGCA and MCCM Sabah branch members. (BT)

Tejari eyes 20pc revenue growth
Tejari Technologies is confident of growing its revenue by 20% this year with the expandion of its retail and wholesale businesses in information and communication technology (ICT products. The recent acquisition of PC3 Technology SV and Essential Action SV have helped boost the group’s revenue for nine-month period ended 31 Aug. (BT)

Perodua allocates RM614m capex
Perodua, Malaysia’s number one car seller in 2010, has set aside RM614.2m for capital expenditure (capex) this year. Of this amount, between RM250m and RM300m will be utilised for the development of a new model, which is expected to further boost overall sales. “New models are needed in this business and we will also work towards increasing the local content. At present, the Alza has the highest local content of 90% while for other models, such as the Viva and Myvi, it is above 80%,” managing director Datuk Aminar Rashid Salleh told a press conference after unveiling the company’s sales figures for 2010 yesterday. He also said the new model would be a small compact car, but declined to say if it would be a completely new model or replacement of units of the current models in Perodua, as the Myvi has been in the market for five years. (BT)

TNB awards RM2.15bn jobs for Ulu Jelai project
Tenaga Nasional has signed two agreements worth some RM2.15bn for its Ulu Jelai hydroelectric project. The company said the contract period for the development of the Ulu Jelai hydroelectric project was five years, during which the payment to the contractors would be made in accordance with the progress. The project cost will potentially result in an increase in TNB's net assets by about 7.1%. TNB said the project was expected to be completed by July 2016. (BT)

20110113 0851 Renewables Enery Related News.

JAPAN'S MARUBENI BUYS STAKE IN CANADA WIND FARM
VANCOUVER, British Columbia, Jan 11 (Reuters) - Marubeni Corp  has bought a 49 percent stake in a wind farm being built in the Canadian province of Ontario, the Japanese trading house said on Tuesday.
Marubeni bought the stake in the Raleigh Wind Energy Center, a 78-megawatt wind energy project located in southwestern Ontario, from Invenergy, a privately owned, Chicago-based company.

BARCLAYS CUTS ENERGY CONVERSION TO UNDERWEIGHT
Jan 11 (Reuters) - Barclays downgraded Energy Conversion Devices Inc  to "underweight" from "overweight" citing risks from exposure to changing renewable energy policies in European markets.
"Increasing risks to sustainability of policies in key markets (France, Italy) along with incremental risk of pricing pressure from crystalline silicon segment warrant a more cautious view", the brokerage said in a research note.

CLEAN ENERGY INVESTMENT HITS RECORD $243 BLN-REPORT
LONDON, Jan 11 (Reuters) - Investment in clean energy soared to a new record of $243 billion in 2010, driven by activity in China, in offshore wind and in European rooftop solar power, a report said on Tuesday.
In 2010, investment in low-carbon forms of energy rose 30 percent from $186.5 billion in 2009. It doubled the figure recorded in 2006 and was nearly five times higher than the 2004 level, the report by Bloomberg New Energy Finance said.

RAINS LIFT SERBIA'S 2010 HYDRO OUTPUT TO A RECORD
SARAJEVO, Jan 11 (Reuters) - Serbian power monopoly EPS said rainfall and good management of hydro power plants lifted its 2010 hydro power output to record levels, 20 percent above the annual target and 12 percent more than 2009.
"Though overhauls at two hydro power plants caused outages throughout 2010, the hydro power output hit a record of 12.5 billion kilowatt-hours due to good hydrology and operational readiness of plants on the Sava and Dunav Rivers," EPS said in a statement on Tuesday .

RENEWABLE ENERGY GROUP IRENA SEES BIG BUDGET RISE
ABU DHABI, Jan 11 (Reuters) - The International Renewable Energy Agency (IRENA) is seeking a more than ten-fold increase in its annual budget to promote sustainable energy, its interim director-general said on Tuesday.
"For the type of work we are thinking about, the optimal budget is about $250 to $300 million," Adnan Amin told reporters. "It is realistic to expect growth in the budget in the medium term."

SUNPOWER IN DEAL TO PROVIDE 711 MW OF SOLAR POWER
LOS ANGELES, Jan 10 (Reuters) - U.S. solar company SunPower Corp  said it reached a deal with utility Southern California Edison to provide 711 megawatts of solar power from three separate sites.
The utility, a unit of Edison International , said the agreements will provide enough power for more than 460,000 homes.

SCOTLAND-CHINA SIGN $10 MLN WASTE ENERGY DEAL
LONDON, Jan 9 (Reuters) - Scotland and China signed a $10 million renewable energy technology licensing deal on Sunday, the Scottish government said, as Chinese Vice Premier Li Keqiang began a four-day state visit to Britain.
The contract will allow technology pioneered in Scotland to be used to generate power from domestic rubbish at a plant in China, the government said in a statement.

BLOATED GERMAN SOLAR SECTOR COSTLY FOR POWER MARKET
FRANKFURT/LONDON, Jan 7 (Reuters) - A rush to pump money into subsidised German solar power has bloated the sector and threatens to distort the electricity market.
Cuts to subsidies did not prevent record capacity additions last year and the boom will continue as investors will seek to take last-minute advantage of generous, but fading support.

LDK TO BUY 70 PCT OF US-BASED SOLAR POWER FOR $33 MLN
Jan 6 (Reuters) - Chinese solar firm LDK Solar Co Ltd  agreed to acquire a 70 percent stake in U.S.-based Solar Power Inc  for about $33 million to enhance module supply for its large-scale projects.
LDK, whose photovoltaic products are used in solar power panels, said it will also purchase certain components of Solar Power's manufacturing equipment and assume control of the module-manufacturing plant in Shenzhen, China.

CHINA TO ADD 38 GW NUCLEAR, 140 GW HYDRO BY 2015
BEIJING, Jan 6 (Reuters) - China will increase its nuclear power capacity by 38 gigawatts and hydropower capacity by 140 gigawatts by 2015, state television quoted the country's top energy official Zhang Guobao as saying on Thursday.
He did not give any forecast for wind power, but said there would be more large-scale windfarms in provinces such as Inner Mongolia and Gansu.

VESTAS SAYS HAD RECORD N.AMERICAN ORDERS IN 2010
COPENHAGEN, Jan 6 (Reuters) - Danish wind turbine maker Vestas Wind Systems A/S  had record North American orders for 871 turbines with total capacity of 1,883 megawatts in 2010, rebounding from a dismal 2009, the company said.
The glimpse of the North American order intake comes ahead of full-year 2010 results due on Feb. 9. Vestas had said on Dec. 29 its 2010 orders in China were record high.

S.KOREA PUMPS UP SUPPORT FOR RENEWABLE ENERGY
SEOUL, Jan 6 (Reuters) - South Korea, the world's No.5 crude importer and No.2 liquefied natural gas (LNG) buyer, will boost financial support for the new and renewable energy industry this year by nearly a quarter, the government said on Thursday.
The country has earmarked 1 trillion won ($891.2 million) in support, up from 808.4 billion won last year, for new and renewable energy projects and financing, such as support for building solar and wind power energy facilities, the Ministry of Knowledge Economy said in a statement.

INDIA POISED FOR BIG SOLAR POWER GROWTH-REPORT
LOS ANGELES, Jan 5 (Reuters) - As No. 1 global solar market Germany ratchets down subsidies for solar power this year, investors looking for the next hot market for the renewable energy source should be eyeing India, according to a report by Lux Research.
The report, released on Wednesday, looked at the growth potential of 15 emerging solar markets and found that India has massive potential because of government subsidies, a need for distributed generation and increasing energy demands.

SIERRA CLUB SUES OVER CALIFORNIA SOLAR PLANT
LOS ANGELES, Jan 5 (Reuters) - A leading environmental advocacy group is suing the state of California's Energy Commission over its approval of a giant solar plant, underscoring the growing challenge to the nation's renewable-energy goals from within the environmental community.
The lawsuit, filed Dec. 30 in California's Supreme Court by the Sierra Club, alleges that state regulators improperly approved the plant, known as the Calico Solar Project.

20110113 0850 Biofuels Related News.

FARM GROUP--INSTALL PUMPS, END ETHANOL CREDIT
ATLANTA, Jan 11 (Reuters) - Congress should transform the $6 billion a year ethanol tax credit into a program that underwrites the installation of "blender" pumps and pipelines so biofuels are more widely available, the largest U.S. farm group said on Tuesday.
The 45-cent a gallon tax credit, which goes to gasoline blenders, expires at the end of this year. Congress voted for the one-year extension last month amid arguments whether to end the tax credit altogether or to reform biofuels supports.

POLL-FARMERS TO US CONGRESS: DON'T TOUCH ETHANOL CREDIT
ATLANTA, Jan 11 (Reuters) - A majority of U.S. farmers want Congress to extend the ethanol tax credit that expires again this year, while a quarter could accept at least some cuts to the controversial subsidy, a Reuters survey showed on Tuesday.
A random poll at the American Farm Bureau Federation's annual meeting found 50 percent of the 436 farmers who responded said they supported the current ethanol tax rate, which some have said is key to further growth of the fuel additive made from corn.

HIGH RAPESEED PRICE COULD CUT FUEL BLENDS-OIL WORLD
HAMBURG, Jan 11 (Reuters) - Rapeseed prices have now reached such high levels that demand for rapeseed oil-based biodiesel for blending with fossil fuels could be cut in coming months, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Oil companies are compelled to blend biodiesel, largely made from rapeseed oil, with fossil diesel in several European countries as part of environmental protection programmes.

US SENATORS DOUBT WTO WOULD UPHOLD US ETHANOL TARIFF
BRASILIA, Jan 10 (Reuters) - U.S. senators John McCain and John Barrasso said on Monday the extension of U.S. ethanol subsidies and a tariff on imports is likely illegal under international trade rules, lending some support to Brazil's opposition to U.S. ethanol policy.
"I believe the WTO would rule against the United States because it's clearly a subsidy that is neither warranted nor in keeping with WTO regulations," Senator McCain of Arizona told reporters after a meeting with Brazilian President Dilma Rousseff in Brasilia.

HIGH FOOD PRICES CLOUD UK GRASS-FOR-ENERGY PLANS
LONDON, Jan 10 (Reuters) - Record high world food prices threaten to limit the use of land for low-carbon energy crops just as British efforts to pioneer growth of the giant grass miscanthus in Europe are poised to gather pace.
Miscanthus giganteus is a 3-metre high Asian elephant grass whose tawny leaves are now at their tallest before harvesting next month.

COSAN TO BUY ZANIN CANE MILL FOR $224.7 MLN
SAO PAULO, Jan 7 (Reuters) - Cosan , Brazil's largest sugar and ethanol group, said on Friday it has signed a binding deal to purchase Zanin cane group, for 378.6 million reais ($224.7 million), including cash and debt.
Zanin's mill in Araraquara, in Sao Paulo state, has a cane crushing capacity of 2.6 million tonnes per year. Cosan has already three mills in the same region.

BRAZIL SEEKS MORE ETHANOL INVESTMENT TO MEET DEMAND
BRASILIA, Jan 6 (Reuters) - Brazil's ethanol sector will need more investment to raise output and keep up with steadily growing demand from its domestic market with millions more flex cars taking to the road, agriculture officials said Thursday.
The Latin American country is a pioneer in sugar-cane ethanol, which is now the most popular mainstream fuel with its motorists who burn it in pure form in locally-made flex-fuel cars, technology found in almost 90 percent of new cars sold in Brazil.