GLOBAL MARKETS-Shares, euro steady after IMF funding; China eyed
TOKYO, April 23 (Reuters) - Asian shares and the euro steadied on Monday after the IMF secured new funding to prevent the contagion of the euro zone's debt crisis, with investors turning to Chinese data to gauge the market's resilience to risk.
"We expect China's PMI number on Monday to confirm our view that activity remains well supported," Barclays Capital analysts said in a research note. "We also expect Euro area PMI to come marginally above consensus on Monday, helping markets keep the positive tone inherited from Friday."
COMMODITIES-Euro data, US equities boost markets
NEW YORK, April 20 (Reuters) - Major commodity markets rose on Friday, after a week of choppy trading, lifted by higher U.S. equities that benefited from strong earnings reports and positive European economic data that assuaged investor fears about the euro zone debt.
German business sentiment rose for the sixth month in a row in April, to its highest since July 2011, to support most markets.
OIL- Oil rises on improved German sentiment
NEW YORK, April 20 (Reuters) - Oil prices rose on Friday as improved German business sentiment countered nervousness about the euro zone debt crisis, while a weaker dollar and stronger equities also lent support.
"People are talking about the Ifo being better than expected and may be reducing the fear about the debt crisis, and the weak dollar and higher equities help crude, along with short-covering ahead of the weekend," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Oil trading faces new disclosure rules -FT
SINGAPORE, April 23 (Reuters) - Oil trading is coming under closer scrutiny as the industry-backed Extractive Industries Transparency Initiative (EITI) explores ways to increase disclosure in deals between private trading firms and national oil companies, the Financial Times reported on Monday.
The EITI, which is a voluntary scheme aimed at improving transparency, has until recently focused primarily on payments by mining and oil companies to governments including royalties and taxes.
Milestone US oil manipulation case unsettles trade
NEW YORK, April 20 (Reuters) - U.S. regulators' $14 million settlement with high-frequency trading firm Optiver over oil price manipulation in 2007 is a "milestone" victory in their toughening stance on market malfeasance which is being closely watched by traders.
In its first major case against an algorithmic trader and the biggest financial penalty involving manipulation in the oil futures market, the Commodity Futures Trading Commission said late Thursday that a court settlement required the Amsterdam-based company to disgorge $1 million in profits and pay $13 million over allegations it used a rapid-fire tool nicknamed "The Hammer" to influence U.S. oil prices in 2007.
EU may review Iran oil ban in coming mths-official
BRUSSELS, April 20 (Reuters) - European Union member states may review in the next two months an embargo on Iranian oil imports that is scheduled to take effect from July, a senior EU official said on Friday.
For now, the official said there was no economic reason to change plans for the ban, which was agreed in January as part of EU efforts to put pressure on Tehran over its nuclear programme.
Iraq unveils oil, gas exploration auction details
LONDON, April 20 (Reuters) - Baghdad unveiled on Friday a list of signing bonuses and the final contract for a forthcoming energy auction, the latest stage in a bold oil expansion plan that moves on from developing existing oilfields to searching for new reserves.
After targeting production capacity in three post-war licensing rounds, Baghdad is now focusing a fourth tender mostly on finding gas in remote parts of western and central Iraq.
S. Sudan withdraws from oil area
JUBA/KHARTOUM, April 20 (Reuters) - South Sudan said on Friday it would withdraw its troops from the disputed Heglig oil region more than a week after seizing it from Sudan, pulling the countries back from the brink of a full-blown war.
Sudan quickly declared victory, saying its armed forces had "liberated" the area by force as thousands of people poured onto the streets of Khartoum cheering, dancing, honking car horns and waving flags.
US natgas futures end up slightly, still near 10-yr low
NEW YORK, April 20 (Reuters) - U.S. natural gas futures, backed by technical buying ahead of the weekend after three straight losing sessions, ended with modest gains on Friday, but mild weather forecasts and record-high supplies continued to limit the upside.
"I think we saw a little short covering today heading into the weekend. It seems like (bearish) sentiment is changing and we may be getting close to a bottom," Energy Management Institute's Dominick Chirichella told Reuters, adding prices could slide another 25 cents or so from here.
Euro Coal-Prices steady, Carbopego tenders
LONDON, April 20 (Reuters) - European physical coal prices steadied on Friday after a day of quiet trading with no fresh deals reported.
"Prices are still stuck in the range of $95-$105 a tonne in ARA and unless there is some major shift change, some shock, I can't see them moving out of the range," said a source at one of Europe's biggest utilities.
Monday, April 23, 2012
20120423 1055 Local & Global Economy Related News.
Malaysia: CPI up moderately on food and non-food items
Malaysia‟s March CPI didn‟t bear surprises, with a moderate increase of 2.1% to 104.5 y-o-y. The index for food and non-alcoholic beverages and non-food showed increases of 2.9% and 1.7% y-o-y respectively for March. The CPI remained unchanged at 104.5 m-o-m. The CPI for 1Q2012, meanwhile, rose 2.3% y-o-y. All main groups advanced with the exception of communication, clothing and footwear. Food and non-alcoholic beverages, in particular, rose 3.6%. (StarBiz)
Leading index rose 2.9% yoy in Feb (0.5% yoy in Jan). Coincident index and lagging index recorded a growth of 3.4% yoy and 5.2% yoy respectively in Feb (-0.6% yoy and +3.8% yoy respectively in Jan). (Department of Statistics)
Bank Negara Malaysia's (BNM) international reserves totalled RM416.6bn (US$135.8bn) as at 13 Apr, up slightly from RM416.1bn (US$135.7bn) as at 30 Mar. The reserves are sufficient to finance 9.5 months of retained imports and was four times the short-term external debt. (BNM)
Malaysia is on track to achieve another breakthrough year in medical tourism this year, Tourism Minister Datuk Seri Dr Ng Yen Yen said on 22 Apr. She said receipts from foreign patients spending on medical treatment in Malaysia totalled RM509.8m, based on 578,403 patients last year. These figures were well above the initial projection of RM431m, she said. (Bernama)
Indonesia: S&P sees policy slippages as it considers rating
Indonesia‟s push to lure investment is at risk from “policy slippages” such as the failure to cut fuel subsidies, said Standard & Poor‟s, the only company with a non-investment-grade rating for the Southeast Asian nation. If the government‟s subsidy spending alters the fiscal outcome or markedly deteriorates the quality of expenditure or if policy measures deter fresh foreign direct investment, then the ratings could stabilize at the current level, according to S&P. Indonesian lawmakers last month rejected the government‟s proposal for a 33% increase in subsidized-fuel prices from 1 April, instead allowing it to raise rates only if the Indonesia Crude Price exceeds the state budgetary assumption of USD105 a barrel by 15% over a six-month period. (Bloomberg)
Indian Finance Minister Pranab Mukherjee said it was "not possible" to cut interest rates further, despite calls by industry to slash further to boost domestic investment and kick-start economic growth. (WSJ)
Thailand’s foreign-exchange reserves rose 0.06% wow to US$178.6bn last week (US$178.5bn in the earlier week). The Bank of Thailand’s holdings of forward contracts rose 1.4% wow to US$29.5bn (US$29.1bn a week earlier). (Bloomberg)
Thailand’s Department of Industrial Promotion is set to inspect the condition of the flood-affected factories and their production process in order to prevent any impact on the manufactured goods. (Thai Financial Post)
Thailand’s government turned down the private sector’s request for postponement in the implementation of the minimum wage hike policy to 2015, reasoning that the policy will enhance the competitiveness of the Thai workforce. (Thai Financial Post)
China’s decision to widen the yuan’s trading band against the dollar means investors can play a bigger role in determining the value of the currency, People’s Bank of China deputy Governor Yi Gang said. (Bloomberg)
The flash reading of the MNI China Business Sentiment Survey rose 0.59% mom to 55.40 in Apr (54.81 in Mar), with new orders growing 2.77% mom to 65.87 (63.10 in Mar), whilst production contracted 0.05% mom to 58.62 (58.67 in Mar). (Bloomberg)
Japan: Lacking fiscal plan may be deflation cause
Japan‟s absence of “concrete reform plans” for the nation‟s finances may be contributing to deflation and sluggish economic growth by discouraging spending by the public on concerns over future fiscal developments, central bank Governor Masaaki Shirakawa said. Shirakawa has pledged to extend “powerful” easing until a 1% price goal is in sight and his policy board next meets on 27 April. The nation‟s borrowings will exceed JPY1,000trn (USD12.4trn) for the first time in this fiscal year, the Finance Ministry projects, while the OECD predicts Japan‟s public debt will reach 219% of GDP. (Bloomberg)
Japan: Loan demand rising a boost for recovery
Demand for loans from Japanese companies, households, and local governments rose in the first quarter as the nation‟s economy rebounded from a contraction in 2011. An index showing companies‟ demand climbed to 6 from minus 2 in the previous three months, while gauges for local governments and households jumped to 7 from zero. The figure adds to evidence that Japan is recovering from last year‟s earthquake, tsunami and nuclear disaster. The Bank of Japan‟s setting of a 1% inflation target and expansion of its asset-purchase program by JPY10trn (USD122bn) in February caused the yen to weaken, helping exporters. (Bloomberg)
Japan confirmed it will take steps to forgive about ¥300bn of Myanmar's debt and resume full-fledged development aid as a way to support the country's democratic and economic reforms. (AP)
Japan pledged ¥600bn in development aid to support infrastructure projects in five Southeast Asian nations that share the Mekong River, i.e. Thailand, Vietnam, Cambodia, Laos and Myanmar. (Bloomberg)
Japan’s tertiary industry index was unchanged on a mom basis in Feb (-0.6% in Jan), coming short of consensus expectations of a 0.7% rise. (RTTNews)
South Korea’s government debt could surge above 100% of the country’s annual GDP by 2030 from just a little more than 34% now, the Bank of Korea said in a report. (Reuters)
The IMF raised US$430bn in new funds for crisis intervention Friday, with China and other emerging economic giants taking part despite worries the money will go to more eurozone bailouts. (AFP)
ECB officials led by President Mario Draghi resisted calls from the IMF and US Treasury to do more to stem the debt crisis roiling the euro-area economy, arguing that they had done enough by cutting interest rates and issuing more long-term bank loans. (AFP, Bloomberg)
EU: Governments urged to fix crisis as G-20 warns of rising stress
Europe‟s governments were told the onus for fixing their debt woes lies with them as the Group of 20 warned the two-year crisis still threatens global growth. Canada and Australia joined the IMF and US in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy. (Bloomberg)
UK: March retail sales surge on warm weather
UK retail sales rose at the fastest pace for more than a year last month as the warmest March for half a century boosted purchases of clothing and gardening products and panic buying lifted auto-fuel demand. Sales including auto fuel gained 1.8% from February, when they fell 0.8%. The data add to evidence that the economy returned to growth in the first quarter, though the outlook remains fragile as inflation outpaces wages, continuing the squeeze on household budgets. Sales were boosted by the warmest March since 1957, increasing demand for clothing and footwear and spending at garden centers. Fuel sales rose 4.9% from February. Sales at non-food stores rose 3%, with clothing sales climbing 2.3% and purchases at department stores increasing 1.6%. (Bloomberg)
Germany should give up its dogged opposition to eurobonds now that all EU members have signed a fiscal treaty, the IMF chief economist Olivier Blanchard said. (AFP)
US: Consumer spending probably paced growth
The biggest gain in consumer spending in a year probably helped the US economy keep expanding in the first quarter even as fuel costs climbed. GDP is expected to rise at a 2.5% annual rate after advancing 3% in the previous three months. The Commerce Department will release the figure on 27 April. Consumer purchases that account for about 70% of the economy climbed by the most since the end of 2010, the survey of economists showed. Job creation and warmer winter weather helped Americans overcome higher prices at the gas pump as auto sales powered ahead and retailers enjoyed more foot traffic. At the same time, the pace of growth may not be enough to convince Federal Reserve policy makers meeting this week to stray from their plan to keep borrowing costs low through 2014. (Bloomberg)
US Treasury Secretary Timothy Geithner told his Indian counterpart Finance Minister Pranab Mukherjee that US businesses have become worried about changes in India's tax regime for foreign companies. (AFP)
US Treasury Secretary Timothy Geithner said the global economic recovery is fragile amid risks from the eurozone and higher oil prices, and Europe’s effort to prevent the spread of its debt crisis depends on the willingness and ability of the region’s leaders to act aggressively and creatively. (Bloomberg)
Malaysia‟s March CPI didn‟t bear surprises, with a moderate increase of 2.1% to 104.5 y-o-y. The index for food and non-alcoholic beverages and non-food showed increases of 2.9% and 1.7% y-o-y respectively for March. The CPI remained unchanged at 104.5 m-o-m. The CPI for 1Q2012, meanwhile, rose 2.3% y-o-y. All main groups advanced with the exception of communication, clothing and footwear. Food and non-alcoholic beverages, in particular, rose 3.6%. (StarBiz)
Leading index rose 2.9% yoy in Feb (0.5% yoy in Jan). Coincident index and lagging index recorded a growth of 3.4% yoy and 5.2% yoy respectively in Feb (-0.6% yoy and +3.8% yoy respectively in Jan). (Department of Statistics)
Bank Negara Malaysia's (BNM) international reserves totalled RM416.6bn (US$135.8bn) as at 13 Apr, up slightly from RM416.1bn (US$135.7bn) as at 30 Mar. The reserves are sufficient to finance 9.5 months of retained imports and was four times the short-term external debt. (BNM)
Malaysia is on track to achieve another breakthrough year in medical tourism this year, Tourism Minister Datuk Seri Dr Ng Yen Yen said on 22 Apr. She said receipts from foreign patients spending on medical treatment in Malaysia totalled RM509.8m, based on 578,403 patients last year. These figures were well above the initial projection of RM431m, she said. (Bernama)
Indonesia: S&P sees policy slippages as it considers rating
Indonesia‟s push to lure investment is at risk from “policy slippages” such as the failure to cut fuel subsidies, said Standard & Poor‟s, the only company with a non-investment-grade rating for the Southeast Asian nation. If the government‟s subsidy spending alters the fiscal outcome or markedly deteriorates the quality of expenditure or if policy measures deter fresh foreign direct investment, then the ratings could stabilize at the current level, according to S&P. Indonesian lawmakers last month rejected the government‟s proposal for a 33% increase in subsidized-fuel prices from 1 April, instead allowing it to raise rates only if the Indonesia Crude Price exceeds the state budgetary assumption of USD105 a barrel by 15% over a six-month period. (Bloomberg)
Indian Finance Minister Pranab Mukherjee said it was "not possible" to cut interest rates further, despite calls by industry to slash further to boost domestic investment and kick-start economic growth. (WSJ)
Thailand’s foreign-exchange reserves rose 0.06% wow to US$178.6bn last week (US$178.5bn in the earlier week). The Bank of Thailand’s holdings of forward contracts rose 1.4% wow to US$29.5bn (US$29.1bn a week earlier). (Bloomberg)
Thailand’s Department of Industrial Promotion is set to inspect the condition of the flood-affected factories and their production process in order to prevent any impact on the manufactured goods. (Thai Financial Post)
Thailand’s government turned down the private sector’s request for postponement in the implementation of the minimum wage hike policy to 2015, reasoning that the policy will enhance the competitiveness of the Thai workforce. (Thai Financial Post)
China’s decision to widen the yuan’s trading band against the dollar means investors can play a bigger role in determining the value of the currency, People’s Bank of China deputy Governor Yi Gang said. (Bloomberg)
The flash reading of the MNI China Business Sentiment Survey rose 0.59% mom to 55.40 in Apr (54.81 in Mar), with new orders growing 2.77% mom to 65.87 (63.10 in Mar), whilst production contracted 0.05% mom to 58.62 (58.67 in Mar). (Bloomberg)
Japan: Lacking fiscal plan may be deflation cause
Japan‟s absence of “concrete reform plans” for the nation‟s finances may be contributing to deflation and sluggish economic growth by discouraging spending by the public on concerns over future fiscal developments, central bank Governor Masaaki Shirakawa said. Shirakawa has pledged to extend “powerful” easing until a 1% price goal is in sight and his policy board next meets on 27 April. The nation‟s borrowings will exceed JPY1,000trn (USD12.4trn) for the first time in this fiscal year, the Finance Ministry projects, while the OECD predicts Japan‟s public debt will reach 219% of GDP. (Bloomberg)
Japan: Loan demand rising a boost for recovery
Demand for loans from Japanese companies, households, and local governments rose in the first quarter as the nation‟s economy rebounded from a contraction in 2011. An index showing companies‟ demand climbed to 6 from minus 2 in the previous three months, while gauges for local governments and households jumped to 7 from zero. The figure adds to evidence that Japan is recovering from last year‟s earthquake, tsunami and nuclear disaster. The Bank of Japan‟s setting of a 1% inflation target and expansion of its asset-purchase program by JPY10trn (USD122bn) in February caused the yen to weaken, helping exporters. (Bloomberg)
Japan confirmed it will take steps to forgive about ¥300bn of Myanmar's debt and resume full-fledged development aid as a way to support the country's democratic and economic reforms. (AP)
Japan pledged ¥600bn in development aid to support infrastructure projects in five Southeast Asian nations that share the Mekong River, i.e. Thailand, Vietnam, Cambodia, Laos and Myanmar. (Bloomberg)
Japan’s tertiary industry index was unchanged on a mom basis in Feb (-0.6% in Jan), coming short of consensus expectations of a 0.7% rise. (RTTNews)
South Korea’s government debt could surge above 100% of the country’s annual GDP by 2030 from just a little more than 34% now, the Bank of Korea said in a report. (Reuters)
The IMF raised US$430bn in new funds for crisis intervention Friday, with China and other emerging economic giants taking part despite worries the money will go to more eurozone bailouts. (AFP)
ECB officials led by President Mario Draghi resisted calls from the IMF and US Treasury to do more to stem the debt crisis roiling the euro-area economy, arguing that they had done enough by cutting interest rates and issuing more long-term bank loans. (AFP, Bloomberg)
EU: Governments urged to fix crisis as G-20 warns of rising stress
Europe‟s governments were told the onus for fixing their debt woes lies with them as the Group of 20 warned the two-year crisis still threatens global growth. Canada and Australia joined the IMF and US in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy. (Bloomberg)
UK: March retail sales surge on warm weather
UK retail sales rose at the fastest pace for more than a year last month as the warmest March for half a century boosted purchases of clothing and gardening products and panic buying lifted auto-fuel demand. Sales including auto fuel gained 1.8% from February, when they fell 0.8%. The data add to evidence that the economy returned to growth in the first quarter, though the outlook remains fragile as inflation outpaces wages, continuing the squeeze on household budgets. Sales were boosted by the warmest March since 1957, increasing demand for clothing and footwear and spending at garden centers. Fuel sales rose 4.9% from February. Sales at non-food stores rose 3%, with clothing sales climbing 2.3% and purchases at department stores increasing 1.6%. (Bloomberg)
Germany should give up its dogged opposition to eurobonds now that all EU members have signed a fiscal treaty, the IMF chief economist Olivier Blanchard said. (AFP)
US: Consumer spending probably paced growth
The biggest gain in consumer spending in a year probably helped the US economy keep expanding in the first quarter even as fuel costs climbed. GDP is expected to rise at a 2.5% annual rate after advancing 3% in the previous three months. The Commerce Department will release the figure on 27 April. Consumer purchases that account for about 70% of the economy climbed by the most since the end of 2010, the survey of economists showed. Job creation and warmer winter weather helped Americans overcome higher prices at the gas pump as auto sales powered ahead and retailers enjoyed more foot traffic. At the same time, the pace of growth may not be enough to convince Federal Reserve policy makers meeting this week to stray from their plan to keep borrowing costs low through 2014. (Bloomberg)
US Treasury Secretary Timothy Geithner told his Indian counterpart Finance Minister Pranab Mukherjee that US businesses have become worried about changes in India's tax regime for foreign companies. (AFP)
US Treasury Secretary Timothy Geithner said the global economic recovery is fragile amid risks from the eurozone and higher oil prices, and Europe’s effort to prevent the spread of its debt crisis depends on the willingness and ability of the region’s leaders to act aggressively and creatively. (Bloomberg)
20120423 1054 Malaysia Corporate Related News.
RRI land tender out soon
The tender for the re-development of the 926ha out of the 1,215ha Rubber Research Institute (RRI) Malaysia land in Sungai Buloh, that is now controlled by Kwasa Land SB is expected to be called by the third or fourth quarter of this year, sources said. The new developments would give the RRI land a huge physical and economic boost that would lift the land value of the area. The tenders were supposed to be out by June but because this development required considerable scrutiny and strategizing, it might take a little longer. (StarBiz)
Petronas bags Singapore, Indonesia gas deals
Petroliam Nasional (Petronas) made a major coup in the past two weeks, securing two gas supply deals in Singapore and Indonesia. In the latest deal, Petronas signed a gas sales agreement with Keppel Energy, a subsidiary of Singapore-listed Keppel Corp to supply 43m standard cubic feet per day of natural gas to the latter, a deal which is believed to be worth USD2.2bn (RM6.74bn). (BT)
Redeveloping Old Klang Road
Far East Organization, Singapore‟s largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in three years. Chief operating officer, Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. The group is considering high-rise condominiums targeting the upper-middle income group, and retail components. (BT)
Proton: Gets 2,800 bookings for Preve
Group MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said Proton Holdings which has received 2,800 bookings for its newly unveiled first global car the Proton Preve, will start to market the car in Indonesia and Thailand by the middle of this year. He said the Proton Preve will be marketed in Australia by the end of this year. He added that he is optimistic that Proton would achieve its monthly target of 4,000 units for the Proton Preve. (Bernama)
AirAsia signs insurance distribution agreement
AirAsia Bhd has entered into a distribution agreement with Tune Ins Holdings SB, which will see the latter provide insurance products to the company‟s customers, and a call option agreement with Tune Ins and Tune Money SB for the right to purchase shares in Tune Ins. The agreement would help improve performance of the travel insurance business and reduce costs, said the company. (Malaysian Reserve)
MAS to set up JV training school in Hyderabad
Malaysian Airline System Bhd‟s (MAS) engineering and maintenance unit expects to expand its training programme for licensed aircraft engineers and technicians by setting up a training school in Hyderabad, India, under its joint-venture project with GMR Hyderabad International Airport. The move is expected to help the national flag carrier to generate more revenue and meet the demand for well-trained aircraft maintenance facility personnel, MAS senior vice president, engineering and maintenance, Subang, Khairuddin Hamzah said. (Malaysian Reserve)
MMC-Gamuda JV had accepted the award of the underground works package for MRT SBK line from MRT Corp. This appoints the JV as the contractor for a contract price of RM8.3bn. The package comprises the design and construction of tunnels, 7 underground stations and other associated works. (BMSB)
DRB-Hicom has denied reports that it was going to dispose of Proton Holdings Bhd’s loss-making Lotus group. It said it had not reached a decision to sell Lotus, and did not know the source of speculation about selling it to automobile group Youngman. The company had also identifed one of Proton’s senior management personnel to take up a position in Lotus. Filings with Bursa Malaysia in April 12 showed that the company had incorporated a company named Lotus Youngman Automotive Co Ltd. (Star Biz)
Edaran Tan Chong Motor (ETCM) launched the all-new Nissan Elgrand and Nissan Murano last Friday. Both Elgrand, a seven-seater premium multi-purpose vehicle (MPV), and Murano, a premium sports utility vehicle (SUV), are fully imported from Japan and retail from RM384,863.20 and RM318,882.50, respectively. Both vehicles are supported by a three-year or 100,000km warranty, whichever comes first.(BT)
Maybank Islamic Bhd is targeting a growth of between 15-18% this year, said its chief executive officer Muzaffar Hisham. He said the growth is achievable as it is in line with the company's aspirations to promote Islamic banking business. "We expect double-digit yoy growth of our assets this year. But I'm cautiously optimistic as we have three more quarters to go," he told the media at the sidelines of Minggu Saham Amanah Malaysia held at Kompleks Sukan Kota Kinabalu. He said the bank is targeting customers through its Ikhwan credit card, Amanah Saham Bumiputera financing as well as deposits for customers. However, he said the main drive for the bank is to create a lot more awareness on Islamic banking in the coming months. (Bernama)
Back in 2010, Malaysia Smelting Corp Bhd (MSC) took a bold decision to switch from its diversified business model to focus on core businesses it has known for the past 100 years, tin smelting and mining. Its efforts paid off when MSC Group became the world's second largest tin company with refined tin production at 46,599 tonnes last year, right after China-based Yunnan Tin at 56,174 tonnes. Now, the rebranding effort to position MSC as a premier international integrated tin smelter and mining group continues under the stewardship of group CEO and executive director Datuk Seri Dr Mohd Ajib Anuar. He told StarBizWeek in an interview that MSC will actively look at strengthening its integrated tin smelting and mining investments particularly in Malaysia, Indonesia and the latest venture in Congo, Africa. In Congo, MSC is currently preparing to invest on a “step-by-step” approach into medium to large deposits tin-mining assets as well as help to develop the existing small scale “artisanal” tin mines for miners in the republic. “MSC is excited over its upstream venture in Congo especially in the medium and industrial-based mining prospects,” says Ajib. However, the MSC venture in the republic will be hugely dependent upon the formation of the Congolian cabinet which will give investors more confidence after the incumbent government returns to power in the African nation. For more than a decade, MSC had been sourcing tin concentrates from Central African countries, which currently provide about 20% -30% of the total volume of concentrates for its Butterworth smelting plant in Penang.(Starbiz)
The Trengganu government has dropped its long-standing legal battle with Petronas and the federal government over unpaid oil royalty payments amounting to several billion ringgit. Petronas said the Trengganu government withdrew its lawsuit on 21 March. The out-of-court settlement will end more than 11 years of legal wrangling that has squeezed Trengganu's finances. (Edge Daily)
Skali Group, an integrated eGovernment and eBusiness company, is considering listing its company on the Main Market of Bursa Malaysia or an international bourse in the next 12 months, says co-founder Tengku Farith Rithauddeen. "We might want to list our company abroad because we feel that the locals do not understand how to trade in technology stocks. But the idea to list abroad has not been finalised yet. It is still something we are considering," he told Business Times in an interview at the company's headquarters in Menara Sentul last week.Tengku Farith said the company is looking at raising RM30-40m from the listing exercise. We (the board) are going to meet this month to finalise matters. We are definite in our plans to list and this is not something that we are just saying. In the next 12 months, we are definitely listing," he said, adding that the company is qualified enough to be listed on the Main Market.Tengku Farith did not discount the possibility of conducting a dual listing in the future. He said the company wants to go public because it needs capital for its regional expansion, which includes penetration into Middle East markets. Besides listing, he said, the company is also looking at several mergers and acquisitions within the region with similar businesses, which includes training, data centres and solutions. As for the company's performance, Tengku Farith said the company's net profit stood at RM7.2m last year, a 20% increase from the RM5.4m recorded in 2010. (BT)
Oldtown, the “kopitiam” chain operator, expects to begin operations at its new factory in Ipoh by 3Q12. Executive director Clarence Leon D’Silva said the new factory will increase its current manufacturing capacity by 5x, to cater to expected higher demand for our beverages and new products over the next few years. He said the overall investment for the factory is about RM38m. In an interview with BT recently, D’Silva said Oldtown is expanding its operations in China. “We plan to set up a new food processing plant in Guangzhou as part of our expansion plan to penetrate the booming growth of China’s food and beverage market,” he said. The company also plans to open two to three new outlets and explore licensing opportunities this year while in Indonesia, it plans to open five to eight new outlets this year.“We will still maintain our strategy to open 20 to 30 new outlets annually,” D’Silva said. OldTown currently has 183 outlets in Malaysia, eight in Singapore, four in Indonesia and one in China, bringing the total to 196. (BT)
A Naim Holdings Bhd-KPJ Healthcare Bhd joint-venture (JV) firm will invest in a private hospital project in oil town Miri. The proposed 100-bed full-fledge hospital will be built on 1.62ha in Bandar Baru Permyjaya, Naim’s flagship integrated mixed development project. Naim engineering and construction head Sivakumar Ramasamy said the four-storey hospital was estimated to cost RM70m.“The hospital is expected to be completed and commissioned in Sep-2014,” he told StarBizWeek last Friday. The project will be undertaken by a 30:70 JV company between Naim’s wholly-owned subisidary, Naim Land Sdn Bhd (NLSB), and KPJ’s wholly-owned unit, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB). It has been agreed that Naim’s construction arm – Naim Engineering Sdn Bhd – will be the contractor for the hospital project. The hospital building will be leased to KPJSB, which will provide a master planner and project manager to advise on the medical centre’s design and technical requirements. When completed, the private hospital would be the third in Miri, Sarawak’s second city. The existing private hospitals are Columbia Medical Centre and Miri City Medical Centre.(Starbiz)
Volkswagen Group Malaysia has recently introduced its first below RM100,000 model to the local market with the launch of VW Polo sedan. Priced at RM99,888, the Polo sedan is currently being manufactured in India. The company might consider assembling the Polo sedan locally in Malaysia if the demand for this model were to exceed 1,000 units per year – and thereafter, reducing the model’s sale price to make it even more affordable. The company anticipates introducing several more models before the year ends. (Malaysian Reserve)
Far East Organization, Singapore's largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in 3 years. COO Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. Chia said that Far East was considering high-rise condominiums targeting the upper-middle income group, and retail components. The group is also considering a 4-star hotel or serviced residences, and studying if the area has potential for medical suites. "Old Klang Road is more developed today with the highways and other infrastructure. We think it is time to uplift the property market there and maximise its potential. But all these are still on the air. We have to wait for the lease held by the current tenants to expire in 2 years," Chia said. Chia declined to reveal the project's gross development value and the property that it plans to redevelop. On whether Far East would be keen to partner local developers and undertake joint venture projects here, Chia said the group was open to talks. (BT)
IGB Corp is said to be mulling over another two REITs to unlock the value of its office and hotel assets after the company announced plans last week to establish and list a retail REIT on Bursa Malaysia. The listing of IGB’s maiden REIT around the third or fourth quarter of this year is to unlock the value of its two prime retail assets – Mid Valley Megamall and The Gardens Mall. Both the malls are under IGB’s 75%-owned unit, KrisAssets Holdings. (Star Biz)
Esso Malaysia: Minority shareholders told to reject Petron offer
The adviser of Esso Malaysia's minority shareholders said on Thursday that they should reject the takeover offer by Petron Corp's unit as it was "not fair”. "We opine that the offer is not fair to the holders and those who reject the offer will stand to benefit from the potential future growth of the company under the new management and ownership," Kenanga Investment Bank said in a circular to shareholders. Petron, the oil and gas arm of the Philippine-based conglomerate San Miguel Corp, completed the acquisition of a 65% stake in Esso last month. The purchase followed a mandatory takeover offer to acquire the remaining 35% stake in Esso for RM3.59 per share. In the circular, Kenanga also said that Petron had intended to continue investing in Esso Malaysia's existing businesses and assets, as well as in new assets. (StarBiz)
MAA Group: Has no plan to sell its two core businesses
MAA Group has no plans to sell its two core businesses – MAAKL Mutual and MAA Takaful. To date, the management had not had any discussion with any party with regards to the disposal of any of its two core businesses, the group said in a statement. While there was no denying that many big financial institutions were eyeing MAAKL Mutual, the group reiterated that there were no plans to dispose of the businesses. It was responding to an article in StarBiz dated Apr 18 titled “MAA said to be considering selling fund management business”. The article, citing sources, among others, stated that while not ruling out the possibility of a corporate exercise, the group might consider selling its unit trust business if the timing and pricing was right and would retain its takaful business. (StarBiz)
Cycle & Carriage: Profit up on Lowe Motors’ acquisition
Cycle & Carriage Bintang has upped its net profit by 6.76% for 1Q FY2012 to RM8.37m from RM7.84m in the same period last year, boosted partly by its acquisition of Lowe Motors Sdn Bhd in May 2011. Revenue rose 6.25% to RM161.67m from RM152.16m earlier, while EPS improved to 8.31 sen from 7.79 sen. It said the unit sales of Mercedes-Benz passenger cars were 9% higher for the quarter under review, which benefited in part from the inclusion of Lowe Motors, adding that the contribution from the after-sales operations also improved following the reintroduction of third-year warranty servicing for vehicles sold since Jan 2010. (StarBiz)
Ajiya: Investing RM30m in second plant in Thailand
Ajiya is investing RM30m to set up a safety glass processing plant in Thailand this year the company's second after a metal roofing manufacturing plant there. MD Chan Wah Kiang said construction of the facility would start any time now and was expected to be completed by the end of the year. The new plant, with a built up area of 15,000 sq ft, is at Armata Nakom industrial estate in Chonburi Province, about 150km from its present metal roofing plant in Bangkok. He said demand for building materials in Thailand was on the uptrend now due to many reconstruction activities following the floods which hit the country last year. In addition, Chan said many multinational corporations (MNCs) whose manufacturing plants were affected by the floods were also relocating elsewhere in Thailand. Meanwhile, Ajiya would also venture into Cambodia and it is in the process of setting up its operations in the former French Colony. Chan said instead of investing in a plant there, the company's Cambodian partner would be the one to set up the safety glass processing plant. (StarBiz)
Tambun Indah: To develop RM50m international school in Penang
Tambun Indah Land Saturday inked a memorandum of understanding with SIS Charter Sdn Bhd to develop mainland Penang's first international school at Pearl City integrated township in Seberang Perai for RM50m. The Penang campus, with minimum 18,580 sq. m. (200,000 sq. ft.) of built-up area, will be built on a 2.6 ha piece of land in Pearl City. Of the estimated development cost of RM50m, Tambun Indah will invest RM35m to design and construct the campus, including land cost, and SIS will invest RM15m to equip it with the necessary facilities, such as equipment, furniture, fittings and interior decorations. Upon the campus' target completion in 2014, SIS will lease the school campus from Tambun Indah for a period of 20 years. It would be able to handle a student population of 800 to 1,200. (Bernama)
Media: Adex down slightly in March
According to data from information and measurement firm Nielsen, total adex in the country slipped 0.9% y-o-y to RM856.21m last month. For the three months ended March 2012, adex dipped 1.4% to RM2.27bn. However, industry experts were quick to point out that the figures were within expectations. Omnicom Media Group (OMG) MD Andreas Vogiatzakis said the dip in adex came as no surprise, as traditionally advertising expenditure has always been slower in 1Q. He said 1Q adex was often lower, especially after the long festive periods of Chinese New Year (CNY) and Christmas which tends to be quite close together. (StarBiz)
Media: Digital terrestrial TV request for proposal by month-end?
Sources said RFP (request for proposal) for digital terrestrial TV broadcasting (DTTB) infrastructure for all broadcasters to ride on to transmit their TV programmes, estimated to cost about RM1bn, will be out by month-end. They said the regulator was working furiously to get the documents out so that interested parties were able to submit their proposals. Interested parties would be given two to three months to evaluate and come up with a business plan for submission to the commission. There are several parties that are interested in getting involved in the conversion of analogue technology to DTTB for all terrestrial TV stations. Under the current set-up, TV broadcasters are individually licensed as content application service providers, whereby they install their own equipment at transmission sites to broadcast. With DTTB one party or a consortium of players will build the infrastructure that can be leased by all players and with compression technology there can be efficient use of spectrum, thereby giving broadcasters more avenues to offer more channels and content. The spectrum bands earmarked for digital broadcasting were 174-230MHz and 470-742MHz. (StarBiz)
Plantation: Certified sustainable palm oil fast gaining market acceptance
According to the Roundtable on Sustainable Palm Oil (RSPO), annual production capacity for certified sustainable palm oil (CSPO) has reached a record 6m tonnes in less than four years since certification began. RSPO secretary-general Darrel Webber said in a statement that the market’s acceptance of sustainable palm oil was accelerating at a significant pace. RSPO added that CSPO had achieved a 20% growth rate within half a year in terms of both CSPO production area to 1,221,240 hectares and CSPO annual production capacity to 6,017,193 tonnes. There were 11 new palm oil mills certified in 1Q 2012, making up a total 46 mills certified to date amongst 30 producer organisations or growers primarily from Malaysia and Indonesia, and increasingly from Papua New Guinea, Solomon Islands, Latin America and West Africa. (StarBiz)
The tender for the re-development of the 926ha out of the 1,215ha Rubber Research Institute (RRI) Malaysia land in Sungai Buloh, that is now controlled by Kwasa Land SB is expected to be called by the third or fourth quarter of this year, sources said. The new developments would give the RRI land a huge physical and economic boost that would lift the land value of the area. The tenders were supposed to be out by June but because this development required considerable scrutiny and strategizing, it might take a little longer. (StarBiz)
Petronas bags Singapore, Indonesia gas deals
Petroliam Nasional (Petronas) made a major coup in the past two weeks, securing two gas supply deals in Singapore and Indonesia. In the latest deal, Petronas signed a gas sales agreement with Keppel Energy, a subsidiary of Singapore-listed Keppel Corp to supply 43m standard cubic feet per day of natural gas to the latter, a deal which is believed to be worth USD2.2bn (RM6.74bn). (BT)
Redeveloping Old Klang Road
Far East Organization, Singapore‟s largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in three years. Chief operating officer, Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. The group is considering high-rise condominiums targeting the upper-middle income group, and retail components. (BT)
Proton: Gets 2,800 bookings for Preve
Group MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said Proton Holdings which has received 2,800 bookings for its newly unveiled first global car the Proton Preve, will start to market the car in Indonesia and Thailand by the middle of this year. He said the Proton Preve will be marketed in Australia by the end of this year. He added that he is optimistic that Proton would achieve its monthly target of 4,000 units for the Proton Preve. (Bernama)
AirAsia signs insurance distribution agreement
AirAsia Bhd has entered into a distribution agreement with Tune Ins Holdings SB, which will see the latter provide insurance products to the company‟s customers, and a call option agreement with Tune Ins and Tune Money SB for the right to purchase shares in Tune Ins. The agreement would help improve performance of the travel insurance business and reduce costs, said the company. (Malaysian Reserve)
MAS to set up JV training school in Hyderabad
Malaysian Airline System Bhd‟s (MAS) engineering and maintenance unit expects to expand its training programme for licensed aircraft engineers and technicians by setting up a training school in Hyderabad, India, under its joint-venture project with GMR Hyderabad International Airport. The move is expected to help the national flag carrier to generate more revenue and meet the demand for well-trained aircraft maintenance facility personnel, MAS senior vice president, engineering and maintenance, Subang, Khairuddin Hamzah said. (Malaysian Reserve)
MMC-Gamuda JV had accepted the award of the underground works package for MRT SBK line from MRT Corp. This appoints the JV as the contractor for a contract price of RM8.3bn. The package comprises the design and construction of tunnels, 7 underground stations and other associated works. (BMSB)
DRB-Hicom has denied reports that it was going to dispose of Proton Holdings Bhd’s loss-making Lotus group. It said it had not reached a decision to sell Lotus, and did not know the source of speculation about selling it to automobile group Youngman. The company had also identifed one of Proton’s senior management personnel to take up a position in Lotus. Filings with Bursa Malaysia in April 12 showed that the company had incorporated a company named Lotus Youngman Automotive Co Ltd. (Star Biz)
Edaran Tan Chong Motor (ETCM) launched the all-new Nissan Elgrand and Nissan Murano last Friday. Both Elgrand, a seven-seater premium multi-purpose vehicle (MPV), and Murano, a premium sports utility vehicle (SUV), are fully imported from Japan and retail from RM384,863.20 and RM318,882.50, respectively. Both vehicles are supported by a three-year or 100,000km warranty, whichever comes first.(BT)
Maybank Islamic Bhd is targeting a growth of between 15-18% this year, said its chief executive officer Muzaffar Hisham. He said the growth is achievable as it is in line with the company's aspirations to promote Islamic banking business. "We expect double-digit yoy growth of our assets this year. But I'm cautiously optimistic as we have three more quarters to go," he told the media at the sidelines of Minggu Saham Amanah Malaysia held at Kompleks Sukan Kota Kinabalu. He said the bank is targeting customers through its Ikhwan credit card, Amanah Saham Bumiputera financing as well as deposits for customers. However, he said the main drive for the bank is to create a lot more awareness on Islamic banking in the coming months. (Bernama)
Back in 2010, Malaysia Smelting Corp Bhd (MSC) took a bold decision to switch from its diversified business model to focus on core businesses it has known for the past 100 years, tin smelting and mining. Its efforts paid off when MSC Group became the world's second largest tin company with refined tin production at 46,599 tonnes last year, right after China-based Yunnan Tin at 56,174 tonnes. Now, the rebranding effort to position MSC as a premier international integrated tin smelter and mining group continues under the stewardship of group CEO and executive director Datuk Seri Dr Mohd Ajib Anuar. He told StarBizWeek in an interview that MSC will actively look at strengthening its integrated tin smelting and mining investments particularly in Malaysia, Indonesia and the latest venture in Congo, Africa. In Congo, MSC is currently preparing to invest on a “step-by-step” approach into medium to large deposits tin-mining assets as well as help to develop the existing small scale “artisanal” tin mines for miners in the republic. “MSC is excited over its upstream venture in Congo especially in the medium and industrial-based mining prospects,” says Ajib. However, the MSC venture in the republic will be hugely dependent upon the formation of the Congolian cabinet which will give investors more confidence after the incumbent government returns to power in the African nation. For more than a decade, MSC had been sourcing tin concentrates from Central African countries, which currently provide about 20% -30% of the total volume of concentrates for its Butterworth smelting plant in Penang.(Starbiz)
The Trengganu government has dropped its long-standing legal battle with Petronas and the federal government over unpaid oil royalty payments amounting to several billion ringgit. Petronas said the Trengganu government withdrew its lawsuit on 21 March. The out-of-court settlement will end more than 11 years of legal wrangling that has squeezed Trengganu's finances. (Edge Daily)
Skali Group, an integrated eGovernment and eBusiness company, is considering listing its company on the Main Market of Bursa Malaysia or an international bourse in the next 12 months, says co-founder Tengku Farith Rithauddeen. "We might want to list our company abroad because we feel that the locals do not understand how to trade in technology stocks. But the idea to list abroad has not been finalised yet. It is still something we are considering," he told Business Times in an interview at the company's headquarters in Menara Sentul last week.Tengku Farith said the company is looking at raising RM30-40m from the listing exercise. We (the board) are going to meet this month to finalise matters. We are definite in our plans to list and this is not something that we are just saying. In the next 12 months, we are definitely listing," he said, adding that the company is qualified enough to be listed on the Main Market.Tengku Farith did not discount the possibility of conducting a dual listing in the future. He said the company wants to go public because it needs capital for its regional expansion, which includes penetration into Middle East markets. Besides listing, he said, the company is also looking at several mergers and acquisitions within the region with similar businesses, which includes training, data centres and solutions. As for the company's performance, Tengku Farith said the company's net profit stood at RM7.2m last year, a 20% increase from the RM5.4m recorded in 2010. (BT)
Oldtown, the “kopitiam” chain operator, expects to begin operations at its new factory in Ipoh by 3Q12. Executive director Clarence Leon D’Silva said the new factory will increase its current manufacturing capacity by 5x, to cater to expected higher demand for our beverages and new products over the next few years. He said the overall investment for the factory is about RM38m. In an interview with BT recently, D’Silva said Oldtown is expanding its operations in China. “We plan to set up a new food processing plant in Guangzhou as part of our expansion plan to penetrate the booming growth of China’s food and beverage market,” he said. The company also plans to open two to three new outlets and explore licensing opportunities this year while in Indonesia, it plans to open five to eight new outlets this year.“We will still maintain our strategy to open 20 to 30 new outlets annually,” D’Silva said. OldTown currently has 183 outlets in Malaysia, eight in Singapore, four in Indonesia and one in China, bringing the total to 196. (BT)
A Naim Holdings Bhd-KPJ Healthcare Bhd joint-venture (JV) firm will invest in a private hospital project in oil town Miri. The proposed 100-bed full-fledge hospital will be built on 1.62ha in Bandar Baru Permyjaya, Naim’s flagship integrated mixed development project. Naim engineering and construction head Sivakumar Ramasamy said the four-storey hospital was estimated to cost RM70m.“The hospital is expected to be completed and commissioned in Sep-2014,” he told StarBizWeek last Friday. The project will be undertaken by a 30:70 JV company between Naim’s wholly-owned subisidary, Naim Land Sdn Bhd (NLSB), and KPJ’s wholly-owned unit, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB). It has been agreed that Naim’s construction arm – Naim Engineering Sdn Bhd – will be the contractor for the hospital project. The hospital building will be leased to KPJSB, which will provide a master planner and project manager to advise on the medical centre’s design and technical requirements. When completed, the private hospital would be the third in Miri, Sarawak’s second city. The existing private hospitals are Columbia Medical Centre and Miri City Medical Centre.(Starbiz)
Volkswagen Group Malaysia has recently introduced its first below RM100,000 model to the local market with the launch of VW Polo sedan. Priced at RM99,888, the Polo sedan is currently being manufactured in India. The company might consider assembling the Polo sedan locally in Malaysia if the demand for this model were to exceed 1,000 units per year – and thereafter, reducing the model’s sale price to make it even more affordable. The company anticipates introducing several more models before the year ends. (Malaysian Reserve)
Far East Organization, Singapore's largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in 3 years. COO Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. Chia said that Far East was considering high-rise condominiums targeting the upper-middle income group, and retail components. The group is also considering a 4-star hotel or serviced residences, and studying if the area has potential for medical suites. "Old Klang Road is more developed today with the highways and other infrastructure. We think it is time to uplift the property market there and maximise its potential. But all these are still on the air. We have to wait for the lease held by the current tenants to expire in 2 years," Chia said. Chia declined to reveal the project's gross development value and the property that it plans to redevelop. On whether Far East would be keen to partner local developers and undertake joint venture projects here, Chia said the group was open to talks. (BT)
IGB Corp is said to be mulling over another two REITs to unlock the value of its office and hotel assets after the company announced plans last week to establish and list a retail REIT on Bursa Malaysia. The listing of IGB’s maiden REIT around the third or fourth quarter of this year is to unlock the value of its two prime retail assets – Mid Valley Megamall and The Gardens Mall. Both the malls are under IGB’s 75%-owned unit, KrisAssets Holdings. (Star Biz)
Esso Malaysia: Minority shareholders told to reject Petron offer
The adviser of Esso Malaysia's minority shareholders said on Thursday that they should reject the takeover offer by Petron Corp's unit as it was "not fair”. "We opine that the offer is not fair to the holders and those who reject the offer will stand to benefit from the potential future growth of the company under the new management and ownership," Kenanga Investment Bank said in a circular to shareholders. Petron, the oil and gas arm of the Philippine-based conglomerate San Miguel Corp, completed the acquisition of a 65% stake in Esso last month. The purchase followed a mandatory takeover offer to acquire the remaining 35% stake in Esso for RM3.59 per share. In the circular, Kenanga also said that Petron had intended to continue investing in Esso Malaysia's existing businesses and assets, as well as in new assets. (StarBiz)
MAA Group: Has no plan to sell its two core businesses
MAA Group has no plans to sell its two core businesses – MAAKL Mutual and MAA Takaful. To date, the management had not had any discussion with any party with regards to the disposal of any of its two core businesses, the group said in a statement. While there was no denying that many big financial institutions were eyeing MAAKL Mutual, the group reiterated that there were no plans to dispose of the businesses. It was responding to an article in StarBiz dated Apr 18 titled “MAA said to be considering selling fund management business”. The article, citing sources, among others, stated that while not ruling out the possibility of a corporate exercise, the group might consider selling its unit trust business if the timing and pricing was right and would retain its takaful business. (StarBiz)
Cycle & Carriage: Profit up on Lowe Motors’ acquisition
Cycle & Carriage Bintang has upped its net profit by 6.76% for 1Q FY2012 to RM8.37m from RM7.84m in the same period last year, boosted partly by its acquisition of Lowe Motors Sdn Bhd in May 2011. Revenue rose 6.25% to RM161.67m from RM152.16m earlier, while EPS improved to 8.31 sen from 7.79 sen. It said the unit sales of Mercedes-Benz passenger cars were 9% higher for the quarter under review, which benefited in part from the inclusion of Lowe Motors, adding that the contribution from the after-sales operations also improved following the reintroduction of third-year warranty servicing for vehicles sold since Jan 2010. (StarBiz)
Ajiya: Investing RM30m in second plant in Thailand
Ajiya is investing RM30m to set up a safety glass processing plant in Thailand this year the company's second after a metal roofing manufacturing plant there. MD Chan Wah Kiang said construction of the facility would start any time now and was expected to be completed by the end of the year. The new plant, with a built up area of 15,000 sq ft, is at Armata Nakom industrial estate in Chonburi Province, about 150km from its present metal roofing plant in Bangkok. He said demand for building materials in Thailand was on the uptrend now due to many reconstruction activities following the floods which hit the country last year. In addition, Chan said many multinational corporations (MNCs) whose manufacturing plants were affected by the floods were also relocating elsewhere in Thailand. Meanwhile, Ajiya would also venture into Cambodia and it is in the process of setting up its operations in the former French Colony. Chan said instead of investing in a plant there, the company's Cambodian partner would be the one to set up the safety glass processing plant. (StarBiz)
Tambun Indah: To develop RM50m international school in Penang
Tambun Indah Land Saturday inked a memorandum of understanding with SIS Charter Sdn Bhd to develop mainland Penang's first international school at Pearl City integrated township in Seberang Perai for RM50m. The Penang campus, with minimum 18,580 sq. m. (200,000 sq. ft.) of built-up area, will be built on a 2.6 ha piece of land in Pearl City. Of the estimated development cost of RM50m, Tambun Indah will invest RM35m to design and construct the campus, including land cost, and SIS will invest RM15m to equip it with the necessary facilities, such as equipment, furniture, fittings and interior decorations. Upon the campus' target completion in 2014, SIS will lease the school campus from Tambun Indah for a period of 20 years. It would be able to handle a student population of 800 to 1,200. (Bernama)
Media: Adex down slightly in March
According to data from information and measurement firm Nielsen, total adex in the country slipped 0.9% y-o-y to RM856.21m last month. For the three months ended March 2012, adex dipped 1.4% to RM2.27bn. However, industry experts were quick to point out that the figures were within expectations. Omnicom Media Group (OMG) MD Andreas Vogiatzakis said the dip in adex came as no surprise, as traditionally advertising expenditure has always been slower in 1Q. He said 1Q adex was often lower, especially after the long festive periods of Chinese New Year (CNY) and Christmas which tends to be quite close together. (StarBiz)
Media: Digital terrestrial TV request for proposal by month-end?
Sources said RFP (request for proposal) for digital terrestrial TV broadcasting (DTTB) infrastructure for all broadcasters to ride on to transmit their TV programmes, estimated to cost about RM1bn, will be out by month-end. They said the regulator was working furiously to get the documents out so that interested parties were able to submit their proposals. Interested parties would be given two to three months to evaluate and come up with a business plan for submission to the commission. There are several parties that are interested in getting involved in the conversion of analogue technology to DTTB for all terrestrial TV stations. Under the current set-up, TV broadcasters are individually licensed as content application service providers, whereby they install their own equipment at transmission sites to broadcast. With DTTB one party or a consortium of players will build the infrastructure that can be leased by all players and with compression technology there can be efficient use of spectrum, thereby giving broadcasters more avenues to offer more channels and content. The spectrum bands earmarked for digital broadcasting were 174-230MHz and 470-742MHz. (StarBiz)
Plantation: Certified sustainable palm oil fast gaining market acceptance
According to the Roundtable on Sustainable Palm Oil (RSPO), annual production capacity for certified sustainable palm oil (CSPO) has reached a record 6m tonnes in less than four years since certification began. RSPO secretary-general Darrel Webber said in a statement that the market’s acceptance of sustainable palm oil was accelerating at a significant pace. RSPO added that CSPO had achieved a 20% growth rate within half a year in terms of both CSPO production area to 1,221,240 hectares and CSPO annual production capacity to 6,017,193 tonnes. There were 11 new palm oil mills certified in 1Q 2012, making up a total 46 mills certified to date amongst 30 producer organisations or growers primarily from Malaysia and Indonesia, and increasingly from Papua New Guinea, Solomon Islands, Latin America and West Africa. (StarBiz)
20120423 1027 Global Market Related News.
Asian Stocks Decline as Earnings Overshadow Europe Optimism (Source: Bloomberg)
Asian stocks reversed earlier gains as weaker earnings from Daewoo Engineering & Construction Co. and Tokyo Steel (5423) Manufacturing Co. overshadowed optimism extra funds pledged to the International Monetary Fund will help contain Europe’s sovereign-debt crisis. Daewoo Engineering dropped 3.8 percent in Seoul after the construction company posted a 38 percent drop in first-quarter operating profit. Tokyo Steel slumped 7.9 percent after the steelmaker’s full-year loss widened on increased production costs. Canon Inc. (7751), Japan’s biggest camera maker that gets 31 percent of its sales in Europe, added 0.9 percent. The additional money for the IMF “just adds another layer of protection for investors against the existing crisis,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Asia is more likely to trade out of the Chinese news flow in the short term than anything else.”
The MSCI Asia Pacific Index (MXAP) dropped 0.1 percent to 124.04 as of 10:44 a.m. in Tokyo, erasing gains of as much as 0.3 percent. The gauge posted its fourth weekly retreat this year last week as the Group of 20 nations warned Europe’s debt crisis still threatens global growth and as reports showed economic growth is slowing in the U.S. and China. HSBC Holdings Plc and Markit Economics are set to release data today on Chinese factory output in April.
Japan Stocks Swing From Gains, Losses on Shippers, Europe (Source: Bloomberg)
April 23 (Bloomberg) -- Japanese stocks swung between gains and losses as declines in shippers and utility shares overshadowed optimism that policy makers are pitching in more money to fight the European debt crisis. The Nikkei 225 Stock Average (NKY) fell less than 0.1 percent to 9,558.89 as of 10:40 a.m. in Tokyo after earlier rising as much as 0.9 percent. The broader Topix Index lost 0.2 percent to 810.32.
European Stocks Post First Weekly Advance Since Mid-March (Source: Bloomberg)
European stocks capped the first weekly gain since mid-March as the International Monetary Fund raised its forecasts for global economic growth, U.S. corporate earnings beat estimates and German business confidence improved. Hargreaves Lansdown Plc, Britain’s largest retail broker, jumped 13 percent after posting an 11 percent increase in assets under management. Vestas Wind Systems A/S (VWS) rallied 10 percent on speculation it may be acquired by its Chinese rivals. Repsol YPF SA (REP), the Spanish oil company whose Argentine unit was nationalized, fell 15 percent. Cable & Wireless Worldwide Plc (CW/) dropped 14 percent after India’s Tata Communications Ltd. decided against making an offer for the U.K. network operator.
The Stoxx Europe 600 Index (SXXP) advanced 1.7 percent to 257.79 this week, after four weeks of losses. The benchmark gauge has climbed 5.4 percent so far this year as the European Central Bank disbursed more than 1 trillion euros ($1.3 trillion) to the region’s financial institutions, U.S. economic reports topped estimates and Greece won a second bailout. “The market has stabilized after a couple of down weeks,” said Lawrence Peterman, investment director at Eden Financial Ltd. in London. “The earnings coming through positively, both in the U.S. and in Europe, seems to be quite reassuring.”
U.S. Stocks End Two-Week Slump, Led Higher by Defensive Shares (Source: Bloomberg)
U.S. stocks rose, breaking a two- week slump, as industries considered the safest investments led gains after reports on home sales and jobless claims tempered optimism about the economy while earnings lifted companies from Travelers Cos. to General Electric Co. (GE) Gauges (SPXL1) for utilities, consumer staples, health-care and phone stocks climbed the most among 10 groups in the Standard & Poor’s 500 Index, jumping at least 1.5 percent. Travelers and GE added more than 2.5 percent after their profit beat analysts’ estimates. Technology companies were the only group to retreat, falling for a second week. The industry was dragged down by declines of 5.3 percent by Apple Inc. (AAPL) and 1.6 percent by International Business Machines Corp. (IBM), offsetting Microsoft Corp. (MSFT)’s 5.2 percent rally on better-than-estimated results. The S&P 500 rose 0.6 percent to 1,378.53 for the first weekly advance since March 30. The Dow Jones Industrial Average added 179.67 points, or 1.4 percent, to 13,029.26.
“It’s just a small rotation as some investors reduced the amount of risk in their portfolio, maybe trying to reposition in anticipation of a correction,” Robert Pavlik, who helps manage $1.3 billion as chief market strategist at Banyan Partners LLC in New York, said in a phone interview. “We’ve got some decent earnings. But people are still a little bit nervous that we may not see that continued follow-through with earnings expansion.”
Best Rally Since February on Easing Prospects: China Overnight (Source: Bloomberg)
Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth. The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. was little changed at 103.31 in New York on April 20, leaving its third weekly advance at 0.1 percent. Futures on the CSI 300 Index expiring in May, the most active contract, were little changed at 2,636.80 as of 9:18 a.m. local time in Shanghai. HSBC Holdings Plc and Markit Economics are scheduled to release their preliminary manufacturing index for this month, known as the Flash PMI, at 10:30 a.m. today. It was at 48.3 in March, below the 50 threshold for expansion.
Qihoo 360 Technology Co. (QIHU), a security software developer, rose the most on the Bloomberg China index last week after issuing a filing that showed auditors had consented to its 2010 and 2011 financial statements. Huaneng Power International Inc. (600011), the listed unit of China’s largest electricity producer, traded at the highest premium over Hong Kong shares since April 12.
World’s Highest Stock Valuations Signal Japanese Recovery (Source: Bloomberg)
Japan’s stock market, hobbled by more than a decade of deflation, is showing companies will stage a full earnings recovery from the worst nuclear crisis since Chernobyl, pricing in the biggest rise in profits compared with other countries since 2001. Income in the Nikkei 225 Stock Average (NKY) will rise by 69 percent in 2012, after plunging 31 percent last year, according to more than 2,600 analyst estimates compiled by Bloomberg. At 24.5 times reported earnings, Japanese equities are the most expensive among the world’s 60 biggest markets, trading so high that only by meeting analysts’ forecasts will ratios come back in line with global stocks, data compiled by Bloomberg show.
“The worst is over for Japan in terms of earnings,” Masafumi Oshiden, an investment manager at ING Mutual Funds Management Co. (Japan) Ltd., said in a telephone interview on April 18. The firm oversees about 1.5 trillion yen ($18.4 billion). “Consumer spending is improving and corporate earnings are rebounding. The cautious mood following the quake is gone.” Bulls say the valuations show confidence in a recovery that will help Japanese stocks close the gap with the MSCI All- Country World Index, which has risen almost three times as much since 2009. Bears point to combined annual losses from Sony Corp. (6758) and Sharp Corp. of 900 billion yen and an economy that has contracted three of the past four years as evidence the Nikkei 225, which has rallied 17 percent since November, has come too far, too fast.
FOREX-Euro rises on German Ifo, gains seen fragile
LONDON, April 20 (Reuters) - The euro rose on Friday after a better-than-expected a German business sentiment survey, but gains looked set to be capped by concerns over Spain's finances and uncertainty ahead of the first round of French presidential elections on Sunday.
"The reaction for the euro is more likely to come after Sunday when we begin to hear what the market will view as credible policies should the candidates get elected," said Daragh Maher, currency strategist at HSBC.
Dollar Rises Against Major Peers Before Confidence Report (Source: Bloomberg)
The dollar rose against most of its major counterparts on speculation reports tomorrow will signal the U.S. economy is gaining momentum, damping speculation the Federal Reserve will expand monetary easing. The U.S. currency was 0.5 percent from its highest in more than a week against the yen before the data, which are forecast to show consumer confidence held near the strongest level in a year and new home sales rose. Losses in the euro were limited after nations committed more than $430 billion in fresh money to the International Monetary Fund to help it protect the world economy against Europe’s debt crisis. “The possibility of more Fed easing will still be there, but I think it will be a reduced possibility,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia (CBA), the nation’s largest bank. “That will at the margin support the dollar.”
The dollar was little changed at 81.38 yen as of 10:26 a.m. in Tokyo from the New York close on April 20, when it touched 81.78, the strongest since April 10. It fetched $1.3192 per euro from $1.3219. The euro slid 0.4 percent to 107.36 yen.
Best Rally Since February on Easing Prospects: China Overnight (Source: Bloomberg)
Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth. The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. was little changed at 103.31 in New York on April 20, leaving its third weekly advance at 0.1 percent. Futures on the CSI 300 Index expiring in May, the most active contract, were little changed at 2,636.80 as of 9:18 a.m. local time in Shanghai. HSBC Holdings Plc and Markit Economics are scheduled to release their preliminary manufacturing index for this month, known as the Flash PMI, at 10:30 a.m. today. It was at 48.3 in March, below the 50 threshold for expansion.
Qihoo 360 Technology Co. (QIHU), a security software developer, rose the most on the Bloomberg China index last week after issuing a filing that showed auditors had consented to its 2010 and 2011 financial statements. Huaneng Power International Inc. (600011), the listed unit of China’s largest electricity producer, traded at the highest premium over Hong Kong shares since April 12.
Treasury Yield Holds Near Record Low Before Fed Meeting (Source: Bloomberg)
Treasury 10-year yields were 29 basis points from the record low on speculation Federal Reserve Chairman Ben S. Bernanke will use a press conference this week to say that more needs to be done to help the U.S. economy. Yields have fallen for five weeks, the longest run since June, as some indicators showed a slowing in the economy and Europe’s fiscal crisis drove demand for the relative safety of U.S. debt. The Fed’s policy setting committee is scheduled to meet tomorrow and the next day. It will issue a statement and Bernanke is scheduled to give a press conference on April 25. He said last month that unemployment is too high. “Bernanke will emphasize the weakness of the labor market,” said Hiroki Shimazu, an economist in Tokyo at SMBC Nikko Securities Inc., a unit of Japan’s third-largest publicly traded bank by assets. “That’s positive for Treasuries.”
Benchmark 10-year yields were little changed at 1.96 percent as of 9:44 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The price of the 2 percent security due in February 2022 was 100 11/32. The record low was 1.67 percent set Sept. 23. A basis point is 0.01 percentage point.
Treasury 10-Year Yield Drops for 5th Week on Europe, Data (Source: Bloomberg)
Treasury 10-year note yields fell for a fifth week, the longest stretch since June, as concern Europe’s debt crisis isn’t resolved and weaker-than-forecast U.S. economic data spurred demand for the safest assets. The benchmark security yielded below 2 percent for sixth consecutive days as finance chiefs from the Group of 20 nations meeting in Washington reported the commitment of $430 billion in fresh money yesterday to stem European turmoil. U.S. filings for jobless benefits rose and sales of previously owned homes dropped earlier in the week, renewing concern the economic recovery is slowing before Federal Reserve policy makers meet April 24-25 to set monetary policy.
“The market has been able to kick the can down the road again regarding Europe, but concerns are brewing about the domestic economic picture in the U.S,” said Larry Milstein, managing director in New York of government- and agency-debt trading at R.W. Pressprich & Co., a fixed-income broker and dealer for institutional investors. “That has kept a bid in Treasuries.” The 10-year yield fell on the week two basis points, or 0.2 percentage point, to 1.96 percent, according to Bloomberg Bond Trader prices. The 2 percent note due February 2022 rose 6/32, or $1.88 per $1,000 face value, to 100 12/32. The yield has stayed between 1.94 percent to 2.07 percent since April 7.
Slump Taught Profligate Americans Value of Saving: Economy (Source: Bloomberg)
Americans are likely to keep rebuilding their savings for years to come as the specter of job losses and the meltdown in stocks triggered by the recession lingers, economists say. Households are putting money away at a pace more than double that leading up to the economic slump. The saving rate has averaged 4.8 percent since June 2009, when the 18-month contraction ended, compared with 2.2 percent in the three years leading up the downturn. “Households are going to be mired in this deleveraging environment for a few more years,” Ellen Zentner, a senior U.S. economist at Nomura Securities International Inc. in New York, said in a telephone interview. “That’s not atypical following a financial crisis.”
The need to boost cash reserves and pay down debt may eclipse the urge to be the first on the block to drive the newest model car, stemming a recent decrease in the saving rate. Almost three years into the recovery, the economy has yet to regain even half the 8.8 million jobs lost or the $16.4 trillion in household net worth washed away as a result of the recession, indicating consumers will want to keep a bigger cash cushion.
Consumer Spending Probably Paced Growth: U.S. Economy Preview (Source: Bloomberg)
The biggest gain in consumer spending in a year probably helped the U.S. economy keep expanding in the first quarter even as fuel costs climbed, economists said before a report this week. Gross domestic product, the value of all goods and services the nation produced, rose at a 2.5 percent annual rate after advancing 3 percent in the previous three months, according to the median forecast of 72 economists surveyed by Bloomberg News before the Commerce Department’s April 27 release. Consumer purchases that account for about 70 percent of the economy climbed by the most since the end of 2010, the survey showed. Job creation and warmer winter weather helped Americans overcome higher prices at the gas pump as auto sales powered ahead and retailers enjoyed more foot traffic. At the same time, the pace of growth may not be enough to convince Federal Reserve policy makers meeting this week to stray from their plan to keep borrowing costs low through 2014.
“Consumer activity really accelerated last quarter,” said Christopher Low, chief economist at FTN Financial in New York. “The increase in retail sales we saw was really terrific, and it came after three months of almost no spending growth at all.” The economy needs to expand at a faster pace to drive down unemployment and generate bigger job gains, Fed Chairman Ben S. Bernanke said in a speech on March 26. Federal Open Market Committee members begin a two-day meeting on April 24.
Japan Lacking Fiscal Plan May Be Deflation Cause, Shirakawa Says (Source: Bloomberg)
Japan’s absence of “concrete reform plans” for the nation’s finances may be contributing to deflation and sluggish economic growth by discouraging spending by the public, central bank Governor Masaaki Shirakawa said. Consumers may be limiting spending “on concerns over future fiscal developments,” Shirakawa said in remarks prepared for an event in Washington yesterday. This may be “one factor behind sluggish economic growth and mild deflation,” he said. The Bank of Japan is under pressure from lawmakers to step up its attack on more than decade-long deflation as the government seeks to sustain a recovery from last year’s earthquake and economic contraction. Shirakawa has pledged to extend “powerful” easing until a 1 percent price goal is in sight and his policy board next meets on April 27.
The nation’s borrowings will exceed 1,000 trillion yen ($12.4 trillion) for the first time in this fiscal year, the Finance Ministry projects, while the Organization for Economic Cooperation and Development predicts Japan’s public debt will reach 219 percent of gross domestic product.
Geithner Says Europe Must Be Creative, Aggressive in Crisis (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner said the global economic recovery is fragile and Europe’s effort to prevent the spread of its debt crisis depends on the willingness and ability of the region’s leaders to act aggressively and creatively. “The recovery remains fragile, with continued risks from the euro area and higher oil prices,” Geithner said in a statement today in Washington to the International Monetary Fund’s policy steering committee. The U.S. economy “continues to gather strength,” he said. “The success of the next phase of the crisis response will hinge on Europe’s willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets,” Geithner said.
While cautioning Europe to stay vigilant, Geithner was less pessimistic than when he warned the IMF in September to intensify its efforts to avoid the “threat of cascading default, bank runs and catastrophic risk.”
IMF’S Lagarde Enjoys Funds Victory Exposing Europe Rifts (Source: Bloomberg)
Three months after waving her purse in front of global finance chiefs, Christine Lagarde filled it with more than $430 billion in pledges for the International Monetary Fund. She may not enjoy her victory for long. The lender’s spring meetings ended yesterday in Washington with a doubling of its war chest and a number of sores exposed among its 188 members. Managing Director Lagarde fell short of her original $600 billion goal as the U.S. declined to chip in, while Canada proposed making it harder for Europe to tap aid. Big emerging markets demanded more power at the IMF before writing checks. The tensions leave Lagarde pushing her home continent to justify the show of solidarity with greater efforts to fight the crisis, as Spain’s interest rates soar and Dutch austerity talks flop. If Europe resists, she could find it harder to rally support for sending the region more money or face criticism for bailing out undeserving governments.
“Any further lending to euro zone economies is likely to be under even greater scrutiny from the IMF’s other members,” said Eswar Prasad, a former IMF official now at the Brookings Institution in Washington. “Lagarde faces a difficult balancing act.”
Draghi’s ECB Rejects Geithner-IMF Push for Measures (Source: Bloomberg)
European Central Bank officials led by President Mario Draghi resisted calls from the International Monetary Fund and U.S. Treasury to do more to stem the debt crisis roiling the euro-area economy. As talks of global finance chiefs ended yesterday in Washington, euro-area central bankers from Draghi to Bundesbank President Jens Weidmann argued they have done enough by cutting interest rates and issuing more long-term bank loans. “None of the advice that the IMF is offering has been discussed by the Governing Council, in recent times at least,” Draghi said on April 20 while attending IMF meetings in Washington. Weidmann said in an interview that “the problems in Europe can’t be solved by monetary policy measures.”
Officials in Europe and around the world are bickering about additional crisis-calming steps, as turmoil returns to the continent’s bond market amid concern that Spain may need a bailout. While Draghi says Spain and Italy need to agree further action, Prime Minister Mariano Rajoy’s government wants the ECB to reactivate its bond-buying program.
Coene Says Further ECB Action for Spain Now Risks Credibility (Source: Bloomberg)
European Central Bank Governing Council member Luc Coene said immediate further measures to quell financial turmoil in Spain risk stretching the credibility of the bank’s monetary policy. “We have done what we can do so far within our mandate and within the possibilities we have,” Coene told Bloomberg News in an interview yesterday in Washington. “The only thing we could do is overstretch ourselves and then we would even lose the credibility we have at that moment.” The Frankfurt-based ECB hasn’t bought any government bonds for five straight weeks even as Spain’s borrowing costs have risen amid market uncertainty over its budget-cutting plans. Executive Board member Joerg Asmussen said on April 20 that while the ECB will “monitor closely” Spain’s market situation, the problem can’t be solved by a more active central bank. Since December last year the ECB has pumped more than 1 trillion euros ($1.3 trillion) into the banking system to avert a looming credit crunch.
Europe Urged to Fix Crisis as G-20 Warns of More Stress (Source: Bloomberg)
Europe’s governments were told the onus for fixing their debt woes lies with them as the Group of 20 warned the two-year crisis still threatens global growth. With finance chiefs from the G-20 meeting today in Washington, those from Canada and Australia joined the IMF and U.S. in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy, according to a draft statement obtained by Bloomberg News. As she closed in on her goal of bolstering the IMF’s crisis-fighting coffers by more than $400 billion, Managing Director Christine Lagarde said the lender serves as an emergency backstop and that Europe must protect itself, boost economic growth and cut debt. Italian and Spanish bonds fell today as the G-20 noted “stress has increased as of late.”
“Countries have to take measures,” Lagarde told Bloomberg Television’s “InBusiness With Margaret Brennan” in Washington. “I am in charge of improving the stability and I need to have the umbrella in case the clouds break into a nasty rain.”
German Business Confidence Unexpectedly Increased (Source: Bloomberg)
German business and investor confidence has beaten forecasts every month this year, suggesting the strength of Europe’s largest economy may have been underestimated. The Ifo institute’s business climate index, which today unexpectedly rose to a nine-month high, has beaten the median forecast in Bloomberg News surveys every month since September. An investor confidence index published by the ZEW Center for European Economic Research has exceeded the median estimate for the last five months. “German companies taught nervous financial markets another important lesson today,” said Andreas Rees, an economist at UniCredit Group in Munich. “One should not underestimate the German economy and its resilience.”
The Ifo report and today’s U.K. retail data showing the fastest sales increase in more than a year add to evidence of strength in Europe after the debt crisis damped the region’s growth in the fourth quarter. In Germany, companies have increased sales to faster-growing markets in Asia, and unemployment at a two-decade low is bolstering household spending.
Thein Sein Wins Japan Backing for Myanmar Infrastructure Efforts (Source: Bloomberg)
Myanmar’s President Thein Sein returns home with the support needed to resume financing ports, bridges and roads after winning a debt forgiveness deal from Japan, the Southeast Asian nation’s biggest creditor. Japan will forgive 303.5 billion yen ($3.7 billion) in loans and interest to Myanmar, according to a statement distributed to reporters before Thein Sein met Prime Minister Yoshihiko Noda on April 21. Japan will also roll over 198.9 billion yen of debt, and vowed to resume aid. Thein Sein, on his first visit as head of state, is courting investment from Japan amid a shift toward democracy over the past year that’s encouraged re-engagement with developed nations after five decades of military dictatorship. Honda Motor Co. is among companies expressing interest in Myanmar, a nation of 64 million people between India and China.
Japan will extend economic cooperation to “support Myanmar’s efforts for reforms in various areas towards its democratization, national reconciliation and sustainable development,” Noda said in the statement.
Asian stocks reversed earlier gains as weaker earnings from Daewoo Engineering & Construction Co. and Tokyo Steel (5423) Manufacturing Co. overshadowed optimism extra funds pledged to the International Monetary Fund will help contain Europe’s sovereign-debt crisis. Daewoo Engineering dropped 3.8 percent in Seoul after the construction company posted a 38 percent drop in first-quarter operating profit. Tokyo Steel slumped 7.9 percent after the steelmaker’s full-year loss widened on increased production costs. Canon Inc. (7751), Japan’s biggest camera maker that gets 31 percent of its sales in Europe, added 0.9 percent. The additional money for the IMF “just adds another layer of protection for investors against the existing crisis,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Asia is more likely to trade out of the Chinese news flow in the short term than anything else.”
The MSCI Asia Pacific Index (MXAP) dropped 0.1 percent to 124.04 as of 10:44 a.m. in Tokyo, erasing gains of as much as 0.3 percent. The gauge posted its fourth weekly retreat this year last week as the Group of 20 nations warned Europe’s debt crisis still threatens global growth and as reports showed economic growth is slowing in the U.S. and China. HSBC Holdings Plc and Markit Economics are set to release data today on Chinese factory output in April.
Japan Stocks Swing From Gains, Losses on Shippers, Europe (Source: Bloomberg)
April 23 (Bloomberg) -- Japanese stocks swung between gains and losses as declines in shippers and utility shares overshadowed optimism that policy makers are pitching in more money to fight the European debt crisis. The Nikkei 225 Stock Average (NKY) fell less than 0.1 percent to 9,558.89 as of 10:40 a.m. in Tokyo after earlier rising as much as 0.9 percent. The broader Topix Index lost 0.2 percent to 810.32.
European Stocks Post First Weekly Advance Since Mid-March (Source: Bloomberg)
European stocks capped the first weekly gain since mid-March as the International Monetary Fund raised its forecasts for global economic growth, U.S. corporate earnings beat estimates and German business confidence improved. Hargreaves Lansdown Plc, Britain’s largest retail broker, jumped 13 percent after posting an 11 percent increase in assets under management. Vestas Wind Systems A/S (VWS) rallied 10 percent on speculation it may be acquired by its Chinese rivals. Repsol YPF SA (REP), the Spanish oil company whose Argentine unit was nationalized, fell 15 percent. Cable & Wireless Worldwide Plc (CW/) dropped 14 percent after India’s Tata Communications Ltd. decided against making an offer for the U.K. network operator.
The Stoxx Europe 600 Index (SXXP) advanced 1.7 percent to 257.79 this week, after four weeks of losses. The benchmark gauge has climbed 5.4 percent so far this year as the European Central Bank disbursed more than 1 trillion euros ($1.3 trillion) to the region’s financial institutions, U.S. economic reports topped estimates and Greece won a second bailout. “The market has stabilized after a couple of down weeks,” said Lawrence Peterman, investment director at Eden Financial Ltd. in London. “The earnings coming through positively, both in the U.S. and in Europe, seems to be quite reassuring.”
U.S. Stocks End Two-Week Slump, Led Higher by Defensive Shares (Source: Bloomberg)
U.S. stocks rose, breaking a two- week slump, as industries considered the safest investments led gains after reports on home sales and jobless claims tempered optimism about the economy while earnings lifted companies from Travelers Cos. to General Electric Co. (GE) Gauges (SPXL1) for utilities, consumer staples, health-care and phone stocks climbed the most among 10 groups in the Standard & Poor’s 500 Index, jumping at least 1.5 percent. Travelers and GE added more than 2.5 percent after their profit beat analysts’ estimates. Technology companies were the only group to retreat, falling for a second week. The industry was dragged down by declines of 5.3 percent by Apple Inc. (AAPL) and 1.6 percent by International Business Machines Corp. (IBM), offsetting Microsoft Corp. (MSFT)’s 5.2 percent rally on better-than-estimated results. The S&P 500 rose 0.6 percent to 1,378.53 for the first weekly advance since March 30. The Dow Jones Industrial Average added 179.67 points, or 1.4 percent, to 13,029.26.
“It’s just a small rotation as some investors reduced the amount of risk in their portfolio, maybe trying to reposition in anticipation of a correction,” Robert Pavlik, who helps manage $1.3 billion as chief market strategist at Banyan Partners LLC in New York, said in a phone interview. “We’ve got some decent earnings. But people are still a little bit nervous that we may not see that continued follow-through with earnings expansion.”
Best Rally Since February on Easing Prospects: China Overnight (Source: Bloomberg)
Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth. The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. was little changed at 103.31 in New York on April 20, leaving its third weekly advance at 0.1 percent. Futures on the CSI 300 Index expiring in May, the most active contract, were little changed at 2,636.80 as of 9:18 a.m. local time in Shanghai. HSBC Holdings Plc and Markit Economics are scheduled to release their preliminary manufacturing index for this month, known as the Flash PMI, at 10:30 a.m. today. It was at 48.3 in March, below the 50 threshold for expansion.
Qihoo 360 Technology Co. (QIHU), a security software developer, rose the most on the Bloomberg China index last week after issuing a filing that showed auditors had consented to its 2010 and 2011 financial statements. Huaneng Power International Inc. (600011), the listed unit of China’s largest electricity producer, traded at the highest premium over Hong Kong shares since April 12.
World’s Highest Stock Valuations Signal Japanese Recovery (Source: Bloomberg)
Japan’s stock market, hobbled by more than a decade of deflation, is showing companies will stage a full earnings recovery from the worst nuclear crisis since Chernobyl, pricing in the biggest rise in profits compared with other countries since 2001. Income in the Nikkei 225 Stock Average (NKY) will rise by 69 percent in 2012, after plunging 31 percent last year, according to more than 2,600 analyst estimates compiled by Bloomberg. At 24.5 times reported earnings, Japanese equities are the most expensive among the world’s 60 biggest markets, trading so high that only by meeting analysts’ forecasts will ratios come back in line with global stocks, data compiled by Bloomberg show.
“The worst is over for Japan in terms of earnings,” Masafumi Oshiden, an investment manager at ING Mutual Funds Management Co. (Japan) Ltd., said in a telephone interview on April 18. The firm oversees about 1.5 trillion yen ($18.4 billion). “Consumer spending is improving and corporate earnings are rebounding. The cautious mood following the quake is gone.” Bulls say the valuations show confidence in a recovery that will help Japanese stocks close the gap with the MSCI All- Country World Index, which has risen almost three times as much since 2009. Bears point to combined annual losses from Sony Corp. (6758) and Sharp Corp. of 900 billion yen and an economy that has contracted three of the past four years as evidence the Nikkei 225, which has rallied 17 percent since November, has come too far, too fast.
FOREX-Euro rises on German Ifo, gains seen fragile
LONDON, April 20 (Reuters) - The euro rose on Friday after a better-than-expected a German business sentiment survey, but gains looked set to be capped by concerns over Spain's finances and uncertainty ahead of the first round of French presidential elections on Sunday.
"The reaction for the euro is more likely to come after Sunday when we begin to hear what the market will view as credible policies should the candidates get elected," said Daragh Maher, currency strategist at HSBC.
Dollar Rises Against Major Peers Before Confidence Report (Source: Bloomberg)
The dollar rose against most of its major counterparts on speculation reports tomorrow will signal the U.S. economy is gaining momentum, damping speculation the Federal Reserve will expand monetary easing. The U.S. currency was 0.5 percent from its highest in more than a week against the yen before the data, which are forecast to show consumer confidence held near the strongest level in a year and new home sales rose. Losses in the euro were limited after nations committed more than $430 billion in fresh money to the International Monetary Fund to help it protect the world economy against Europe’s debt crisis. “The possibility of more Fed easing will still be there, but I think it will be a reduced possibility,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia (CBA), the nation’s largest bank. “That will at the margin support the dollar.”
The dollar was little changed at 81.38 yen as of 10:26 a.m. in Tokyo from the New York close on April 20, when it touched 81.78, the strongest since April 10. It fetched $1.3192 per euro from $1.3219. The euro slid 0.4 percent to 107.36 yen.
Best Rally Since February on Easing Prospects: China Overnight (Source: Bloomberg)
Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth. The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. was little changed at 103.31 in New York on April 20, leaving its third weekly advance at 0.1 percent. Futures on the CSI 300 Index expiring in May, the most active contract, were little changed at 2,636.80 as of 9:18 a.m. local time in Shanghai. HSBC Holdings Plc and Markit Economics are scheduled to release their preliminary manufacturing index for this month, known as the Flash PMI, at 10:30 a.m. today. It was at 48.3 in March, below the 50 threshold for expansion.
Qihoo 360 Technology Co. (QIHU), a security software developer, rose the most on the Bloomberg China index last week after issuing a filing that showed auditors had consented to its 2010 and 2011 financial statements. Huaneng Power International Inc. (600011), the listed unit of China’s largest electricity producer, traded at the highest premium over Hong Kong shares since April 12.
Treasury Yield Holds Near Record Low Before Fed Meeting (Source: Bloomberg)
Treasury 10-year yields were 29 basis points from the record low on speculation Federal Reserve Chairman Ben S. Bernanke will use a press conference this week to say that more needs to be done to help the U.S. economy. Yields have fallen for five weeks, the longest run since June, as some indicators showed a slowing in the economy and Europe’s fiscal crisis drove demand for the relative safety of U.S. debt. The Fed’s policy setting committee is scheduled to meet tomorrow and the next day. It will issue a statement and Bernanke is scheduled to give a press conference on April 25. He said last month that unemployment is too high. “Bernanke will emphasize the weakness of the labor market,” said Hiroki Shimazu, an economist in Tokyo at SMBC Nikko Securities Inc., a unit of Japan’s third-largest publicly traded bank by assets. “That’s positive for Treasuries.”
Benchmark 10-year yields were little changed at 1.96 percent as of 9:44 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The price of the 2 percent security due in February 2022 was 100 11/32. The record low was 1.67 percent set Sept. 23. A basis point is 0.01 percentage point.
Treasury 10-Year Yield Drops for 5th Week on Europe, Data (Source: Bloomberg)
Treasury 10-year note yields fell for a fifth week, the longest stretch since June, as concern Europe’s debt crisis isn’t resolved and weaker-than-forecast U.S. economic data spurred demand for the safest assets. The benchmark security yielded below 2 percent for sixth consecutive days as finance chiefs from the Group of 20 nations meeting in Washington reported the commitment of $430 billion in fresh money yesterday to stem European turmoil. U.S. filings for jobless benefits rose and sales of previously owned homes dropped earlier in the week, renewing concern the economic recovery is slowing before Federal Reserve policy makers meet April 24-25 to set monetary policy.
“The market has been able to kick the can down the road again regarding Europe, but concerns are brewing about the domestic economic picture in the U.S,” said Larry Milstein, managing director in New York of government- and agency-debt trading at R.W. Pressprich & Co., a fixed-income broker and dealer for institutional investors. “That has kept a bid in Treasuries.” The 10-year yield fell on the week two basis points, or 0.2 percentage point, to 1.96 percent, according to Bloomberg Bond Trader prices. The 2 percent note due February 2022 rose 6/32, or $1.88 per $1,000 face value, to 100 12/32. The yield has stayed between 1.94 percent to 2.07 percent since April 7.
Slump Taught Profligate Americans Value of Saving: Economy (Source: Bloomberg)
Americans are likely to keep rebuilding their savings for years to come as the specter of job losses and the meltdown in stocks triggered by the recession lingers, economists say. Households are putting money away at a pace more than double that leading up to the economic slump. The saving rate has averaged 4.8 percent since June 2009, when the 18-month contraction ended, compared with 2.2 percent in the three years leading up the downturn. “Households are going to be mired in this deleveraging environment for a few more years,” Ellen Zentner, a senior U.S. economist at Nomura Securities International Inc. in New York, said in a telephone interview. “That’s not atypical following a financial crisis.”
The need to boost cash reserves and pay down debt may eclipse the urge to be the first on the block to drive the newest model car, stemming a recent decrease in the saving rate. Almost three years into the recovery, the economy has yet to regain even half the 8.8 million jobs lost or the $16.4 trillion in household net worth washed away as a result of the recession, indicating consumers will want to keep a bigger cash cushion.
Consumer Spending Probably Paced Growth: U.S. Economy Preview (Source: Bloomberg)
The biggest gain in consumer spending in a year probably helped the U.S. economy keep expanding in the first quarter even as fuel costs climbed, economists said before a report this week. Gross domestic product, the value of all goods and services the nation produced, rose at a 2.5 percent annual rate after advancing 3 percent in the previous three months, according to the median forecast of 72 economists surveyed by Bloomberg News before the Commerce Department’s April 27 release. Consumer purchases that account for about 70 percent of the economy climbed by the most since the end of 2010, the survey showed. Job creation and warmer winter weather helped Americans overcome higher prices at the gas pump as auto sales powered ahead and retailers enjoyed more foot traffic. At the same time, the pace of growth may not be enough to convince Federal Reserve policy makers meeting this week to stray from their plan to keep borrowing costs low through 2014.
“Consumer activity really accelerated last quarter,” said Christopher Low, chief economist at FTN Financial in New York. “The increase in retail sales we saw was really terrific, and it came after three months of almost no spending growth at all.” The economy needs to expand at a faster pace to drive down unemployment and generate bigger job gains, Fed Chairman Ben S. Bernanke said in a speech on March 26. Federal Open Market Committee members begin a two-day meeting on April 24.
Japan Lacking Fiscal Plan May Be Deflation Cause, Shirakawa Says (Source: Bloomberg)
Japan’s absence of “concrete reform plans” for the nation’s finances may be contributing to deflation and sluggish economic growth by discouraging spending by the public, central bank Governor Masaaki Shirakawa said. Consumers may be limiting spending “on concerns over future fiscal developments,” Shirakawa said in remarks prepared for an event in Washington yesterday. This may be “one factor behind sluggish economic growth and mild deflation,” he said. The Bank of Japan is under pressure from lawmakers to step up its attack on more than decade-long deflation as the government seeks to sustain a recovery from last year’s earthquake and economic contraction. Shirakawa has pledged to extend “powerful” easing until a 1 percent price goal is in sight and his policy board next meets on April 27.
The nation’s borrowings will exceed 1,000 trillion yen ($12.4 trillion) for the first time in this fiscal year, the Finance Ministry projects, while the Organization for Economic Cooperation and Development predicts Japan’s public debt will reach 219 percent of gross domestic product.
Geithner Says Europe Must Be Creative, Aggressive in Crisis (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner said the global economic recovery is fragile and Europe’s effort to prevent the spread of its debt crisis depends on the willingness and ability of the region’s leaders to act aggressively and creatively. “The recovery remains fragile, with continued risks from the euro area and higher oil prices,” Geithner said in a statement today in Washington to the International Monetary Fund’s policy steering committee. The U.S. economy “continues to gather strength,” he said. “The success of the next phase of the crisis response will hinge on Europe’s willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets,” Geithner said.
While cautioning Europe to stay vigilant, Geithner was less pessimistic than when he warned the IMF in September to intensify its efforts to avoid the “threat of cascading default, bank runs and catastrophic risk.”
IMF’S Lagarde Enjoys Funds Victory Exposing Europe Rifts (Source: Bloomberg)
Three months after waving her purse in front of global finance chiefs, Christine Lagarde filled it with more than $430 billion in pledges for the International Monetary Fund. She may not enjoy her victory for long. The lender’s spring meetings ended yesterday in Washington with a doubling of its war chest and a number of sores exposed among its 188 members. Managing Director Lagarde fell short of her original $600 billion goal as the U.S. declined to chip in, while Canada proposed making it harder for Europe to tap aid. Big emerging markets demanded more power at the IMF before writing checks. The tensions leave Lagarde pushing her home continent to justify the show of solidarity with greater efforts to fight the crisis, as Spain’s interest rates soar and Dutch austerity talks flop. If Europe resists, she could find it harder to rally support for sending the region more money or face criticism for bailing out undeserving governments.
“Any further lending to euro zone economies is likely to be under even greater scrutiny from the IMF’s other members,” said Eswar Prasad, a former IMF official now at the Brookings Institution in Washington. “Lagarde faces a difficult balancing act.”
Draghi’s ECB Rejects Geithner-IMF Push for Measures (Source: Bloomberg)
European Central Bank officials led by President Mario Draghi resisted calls from the International Monetary Fund and U.S. Treasury to do more to stem the debt crisis roiling the euro-area economy. As talks of global finance chiefs ended yesterday in Washington, euro-area central bankers from Draghi to Bundesbank President Jens Weidmann argued they have done enough by cutting interest rates and issuing more long-term bank loans. “None of the advice that the IMF is offering has been discussed by the Governing Council, in recent times at least,” Draghi said on April 20 while attending IMF meetings in Washington. Weidmann said in an interview that “the problems in Europe can’t be solved by monetary policy measures.”
Officials in Europe and around the world are bickering about additional crisis-calming steps, as turmoil returns to the continent’s bond market amid concern that Spain may need a bailout. While Draghi says Spain and Italy need to agree further action, Prime Minister Mariano Rajoy’s government wants the ECB to reactivate its bond-buying program.
Coene Says Further ECB Action for Spain Now Risks Credibility (Source: Bloomberg)
European Central Bank Governing Council member Luc Coene said immediate further measures to quell financial turmoil in Spain risk stretching the credibility of the bank’s monetary policy. “We have done what we can do so far within our mandate and within the possibilities we have,” Coene told Bloomberg News in an interview yesterday in Washington. “The only thing we could do is overstretch ourselves and then we would even lose the credibility we have at that moment.” The Frankfurt-based ECB hasn’t bought any government bonds for five straight weeks even as Spain’s borrowing costs have risen amid market uncertainty over its budget-cutting plans. Executive Board member Joerg Asmussen said on April 20 that while the ECB will “monitor closely” Spain’s market situation, the problem can’t be solved by a more active central bank. Since December last year the ECB has pumped more than 1 trillion euros ($1.3 trillion) into the banking system to avert a looming credit crunch.
Europe Urged to Fix Crisis as G-20 Warns of More Stress (Source: Bloomberg)
Europe’s governments were told the onus for fixing their debt woes lies with them as the Group of 20 warned the two-year crisis still threatens global growth. With finance chiefs from the G-20 meeting today in Washington, those from Canada and Australia joined the IMF and U.S. in pressing Europe to intensify efforts to quell the turmoil as it spreads to Spain. The G-20 cited “the situation in Europe” first in a list of drags on the world economy, according to a draft statement obtained by Bloomberg News. As she closed in on her goal of bolstering the IMF’s crisis-fighting coffers by more than $400 billion, Managing Director Christine Lagarde said the lender serves as an emergency backstop and that Europe must protect itself, boost economic growth and cut debt. Italian and Spanish bonds fell today as the G-20 noted “stress has increased as of late.”
“Countries have to take measures,” Lagarde told Bloomberg Television’s “InBusiness With Margaret Brennan” in Washington. “I am in charge of improving the stability and I need to have the umbrella in case the clouds break into a nasty rain.”
German Business Confidence Unexpectedly Increased (Source: Bloomberg)
German business and investor confidence has beaten forecasts every month this year, suggesting the strength of Europe’s largest economy may have been underestimated. The Ifo institute’s business climate index, which today unexpectedly rose to a nine-month high, has beaten the median forecast in Bloomberg News surveys every month since September. An investor confidence index published by the ZEW Center for European Economic Research has exceeded the median estimate for the last five months. “German companies taught nervous financial markets another important lesson today,” said Andreas Rees, an economist at UniCredit Group in Munich. “One should not underestimate the German economy and its resilience.”
The Ifo report and today’s U.K. retail data showing the fastest sales increase in more than a year add to evidence of strength in Europe after the debt crisis damped the region’s growth in the fourth quarter. In Germany, companies have increased sales to faster-growing markets in Asia, and unemployment at a two-decade low is bolstering household spending.
Thein Sein Wins Japan Backing for Myanmar Infrastructure Efforts (Source: Bloomberg)
Myanmar’s President Thein Sein returns home with the support needed to resume financing ports, bridges and roads after winning a debt forgiveness deal from Japan, the Southeast Asian nation’s biggest creditor. Japan will forgive 303.5 billion yen ($3.7 billion) in loans and interest to Myanmar, according to a statement distributed to reporters before Thein Sein met Prime Minister Yoshihiko Noda on April 21. Japan will also roll over 198.9 billion yen of debt, and vowed to resume aid. Thein Sein, on his first visit as head of state, is courting investment from Japan amid a shift toward democracy over the past year that’s encouraged re-engagement with developed nations after five decades of military dictatorship. Honda Motor Co. is among companies expressing interest in Myanmar, a nation of 64 million people between India and China.
Japan will extend economic cooperation to “support Myanmar’s efforts for reforms in various areas towards its democratization, national reconciliation and sustainable development,” Noda said in the statement.
20120423 1027 Global Commodities Related News.
Hedge Funds Cut Bullish Wagers by the Most in Four Months (Source: Bloomberg)
Hedge funds cut their bets on higher commodity prices by the most in four months on mounting concern that Europe’s debt crisis will derail global growth and curb demand for raw materials. Money managers lowered net-long positions across 18 U.S. futures and options by 11 percent to 898,022 contracts in the week ended April 17, the most since Dec. 20, data from the Commodity Futures Trading Commission show. Bets on rising sugar prices fell the most in more than three years, while the funds anticipate declines in cotton, wheat, coffee and natural gas.
A surge in unemployment from Spain to Italy to Greece is undermining efforts to quell the region’s debt as borrowing costs rise. U.S. industrial production stalled for a second month in March, the Federal Reserve said April 17. Home prices in China fell last month in a record 37 of 70 cities tracked by the government, data showed April 18. The “super cycle” that drove an almost fourfold gain in commodity prices since the end of 2001 may be ending, Citigroup Inc. said last week. “Concerns about a global slowdown are growing,” said Walter ‘Bucky’ Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama. “The conditions just aren’t favorable for a commodity rally.”
Rain helps Spanish grain crop in north, not south (Source: CME)
Spain's wheat and barley crops in the northern grain belt may benefit from recent rain after a long drought, but prospects are less encouraging in the south of the major grain importer, a government specialist said on Thursday.
Rainfall in Spain has been above average for the past two weeks. But the crop cycle in the south was already advanced by the end of the driest December-to-February period in 65 years.
GRAINS-U.S. corn rises for 2nd day, soy up on strong demand
SINGAPORE, April 20 (Reuters) - Chicago corn edged higher , building on gains as the market was lifted by talk of Chinese purchases, which could further tighten U.S. supplies estimated at a 16-year low by the end of summer.
"There have been strong rumours that China was buying U.S. corn overnight, but that has yet to be confirmed," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
POLL-S.Africa maize output f'cast seen down to 11.12 mln T
JOHANNESBURG, April 20 (Reuters) - South Africa is likely to further cut its maize output forecast for the 2011/12 season as a late-season drought weighs on yields, a Reuters survey showed on Friday.
The government's Crop Estimates Committee's (CEC) last month cut the its forecast for the season to 11.3 million tonnes on drought worries.
Spring barley favoured as Western Europe replants
LONDON, April 20 (Reuters) - Farmers in western Europe are turning to spring barley and maize as they are forced to replant large swathes of land where severe frosts have destroyed winter crops.
Losses due to severe frost in early February are estimated to have led to the resowing of about 600,000 hectares of winter crops in France, the top cereals producer in the European Union, mainly in the northeast.
India eyes record-large grain harvest -report
SINGAPORE, April 20 (Reuters) - India raised its estimate for wheat and rice output to a record-large 252.56 million tonnes in the year to June, up 3.2 percent from a year ago on crop-friendly weather, the Wall Street Journal reported, quoting unnamed farm ministry officials.
The latest forecast is about 2 million tonnes more than a prior projection of 250.46 million tonnes. The higher estimate is largely because of better-than-expected wheat production following a prolonged winter chill in February and March which improved yields, the report said.
Argentina cuts soy, corn output estimates
BUENOS AIRES, April 19 (Reuters) - Argentina cut its official estimates for this season's soy and corn crops, citing bad weather, while a top grains exchange said lower-than-expected yields may force it to trim its expectations as well.
Argentina, the world's second largest exporter of corn and third largest supplier of soybeans, is set to produce 42.9 million tonnes of soy and 20.3 million tonnes of corn in this crop year, the Agriculture Ministry said on Thursday.
India eyes record-large grain harvest (Source: CME)
India raised its estimate for wheat and rice output to a record-large 252.56 million tonnes in the year to June, up 3.2 percent from a year ago on crop-friendly weather, the Wall Street Journal reported, quoting unnamed farm ministry officials. The latest forecast is about 2 million tonnes more than a prior projection of 250.46 million tonnes. The higher estimate is largely because of better-than-expected wheat production following a prolonged winter chill in February and March which improved yields, the report said.
Recap: Wheat Futures (Source: CME)
Wheat futures settled low-range with nearby contracts leading losses. Chicago wheat ended down 2 3/4 to 9 cents, Kansas City settled 8 to 11 1/2 cents lower and Minneapolis finished roughly a dime to 18 cents lower. Chicago wheat remains in an extended downtrend. The winter wheat crop is off to an early and favorable start, according to USDA’s weekly condition data.
Wheat Market Recap Report (Source: CME)
July Wheat finished down 7 at 623, 11 off the high and 2 1/4 up from the low. December Wheat closed down 5 1/2 at 661 3/4. This was 3 1/4 up from the low and 8 3/4 off the high. May wheat closed 9 cents lower on the session and down 7 3/4 cents for the week. A lack of new crop production concerns, talk of improving crop conditions and the move from higher to lower for the corn market helped to spark the selling pressures. Spring wheat concerns for cold weather into the weekend helped to provide some light support early but sellers were active when corn pushed lower and the market closed lower on the week and experienced "lower lows" for the move this week which will keep technical traders bearish. The UN Food and Agriculture Organization believes that Iran wheat imports for the 2012/13 season will be down 32% to 1.7 million tonnes due to high carryover stocks. July Oats closed down 1 1/2 at 324 1/4. This was 1 1/4 up from the low and 5 1/4 off the high.
Recap: Corn (Source: CME)
Corn ended the day under pressure and posted sharp losses for the week. Futures were supported yesterday by rumors China was on a U.S.-corn-buying binge. That rumor provided followthrough initially this morning, but the lack of confirmation led to late profit-taking. If the Chinese corn purchases are confirmed, key will be whether they are for the current marketing year, new-crop corn or a combination of both.
Corn Market Recap for 4/20/2012 (Source: CME)
July Corn finished down 9 at 603, 16 off the high and 3 1/2 up from the low. December Corn closed down 5 at 536 3/4. This was 4 1/2 up from the low and 8 off the high. May corn closed 8 1/2 cents lower on the session and down 16 3/4 cents for the week. A continued strong cash market and supportive trade in outside markets helped to spark the early rally to just shy of the highs for the week. However, the outlook for favorable planting weather next week may have been a factor to spark selling pressures with the market pushing moderately lower on the day into the mid-session. Rumors of China buying old crop corn were left unconfirmed with no new export sales news from the USDA this morning and this may have added to the negative tone. In addition, bean/corn spread buying may have pressured the market as well. July Rice finished up 0.165 at 15.76, 0.02 off the high and 0.17 up from the low.
U.S. corn rises for 2nd day (Source: CME)
Chicago corn edged higher , building on gains as the market was lifted by talk of Chinese purchases, which could further tighten U.S. supplies estimated at a 16-year low by the end of summer. "There have been strong rumours that China was buying U.S. corn overnight, but that has yet to be confirmed," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
SOFTS-ICE sugar firms, near 11-month low, coffee up
LONDON, April 20 (Reuters) - Raw sugar futures on ICE rose in early trading, bouncing off an 11-month low hit the previous session, while arabica coffee also rose, consolidating above Monday's 18-month low. Raw sugar futures were higher, after falling in the previous session as dealers eyed potential additional exports from India, the world's number 2 producer.
Kingsman trims 2012/13 c/s Brazil cane forecast
LONDON, April 20 (Reuters) - Consultancy Kingsman SA on Friday trimmed its forecast for 2012/13 cane output in centre-south Brazil to 510 million tonnes, from a previous forecast of 520 million tonnes estimated in January.
"The end result is an unchanged sugar estimate of 32.8 million tonnes," Lausanne-based Kingsman said in a statement.
N America Q1 2012 cocoa grind down 4.04 pct yr/yr
NEW YORK, April 19 (Reuters) - North American cocoa grindings in the first quarter dropped 4.04 percent from the upwardly revised year-ago figure, data from the National Confectioners Association showed on Thursday, falling into the lower end of estimates.
Grindings reached 119,022 tonnes in the first quarter, up from the revised data for the first quarter of 2011 at 124,028 tonnes, which was originally reported at 118,633 tonnes.
Brazil 12/13 sugar exports seen up 2 pct-attache
April 19 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:
"Brazil's MY 2012/13 sugarcane crop is forecast at 565 million tonnes, up 4 million tonnes from the previous season (561 million tonnes). Approximately 48.63 percent of the crop should be diverted to sugar, up 0.56 percentage points compared to MY 2011/12 due to continued strong international demand for the product. Total exports for MY 2012/13 are projected at 25.25 million tonnes, raw value, up 2 percent from MY 2011/12."
Analyst says Brazil CS cane crop to fall for 2nd yr
SAO PAULO, April 19 (Reuters) - Leading Brazilian sugar cane analyst Canaplan sees another year of decline in output from the world's largest supplier of sugar, after lingering dry weather crimped the main crop, a local news service said on Thursday.
Canaplan's lead analyst Luiz Carlos Correa Carvalho pegged the 2012/13 center-south cane crush at 470 million tonnes, down from the 493 million crushed last season, in his first forecast of the year published by the Agencia Estado newswire.
Forecasts for Brazil's 2012/13 CS cane crop
April 19 (Reuters) - Brazil's center-south 2012/13 sugarcane harvest is struggling to expand this year after disappointing output in the 2011/12 season due to a mixture of bad weather and overdue replanting of ageing cane plants.
The new crushing season started in April. Although planting of cane has expanded, dry weather persists over the main growing areas which will limit the recovery of the crop in the world's largest sugar exporter.
Oil Trades Near Three-Day High in New York Before Economic Data (Source: Bloomberg)
Oil traded near the highest close in three days before reports that may show a strengthening of the economy in the U.S., the world’s biggest crude consumer. Futures were little changed in New York after rising 0.2 percent last week. Consumer purchases that account for about 70 percent of the U.S. economy probably climbed by the most since the end of 2010, according to a Bloomberg News survey before an April 27 Commerce Department report. Iraq halted crude exports from northern fields because of a technical fault at a pipeline network in neighboring Turkey, the Oil Ministry said. Crude for June delivery was at $103.77 a barrel, down 11 cents, in electronic trading on the New York Mercantile Exchange at 9:40 a.m. Sydney time. The contract rose 1.1 percent to $103.88 on April 20, the highest close since April 17. Front- month prices are 5 percent higher this year.
Brent oil for June settlement was at $118.63 a barrel, down 13 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s front month premium to West Texas Intermediate was at $14.85, from $14.88 on April 20. Iraq’s crude exports stopped at 7:45 p.m. on April 21, the ministry said in a statement on the website of the official National Media Center yesterday. The nation normally exports 450,000 to 500,000 barrels a day from northern fields through Turkey. It ships most of its oil from the south on tankers sailing from the Persian Gulf.
Cheap European gasoline set to hit U.S. market
--Robert Campbell is a Reuters market analyst. The views expressed are his own--
NEW YORK, April 19 (Reuters) - U.S. gasoline traders are bracing for higher imports from Europe as a slump in European benchmark prices has re-opened the door to arbitrage shipments to the New York Harbor.
European cash gasoline prices spiked in late March as heavy regional refinery maintenance cut into supplies, sending cash Eurobob gasoline blendstock prices in the Amsterdam-Rotterdam-Antwerp hub above New York Harbor cash RBOB gasoline prices.
OIL-Brent steady above $118, eyeing biggest weekly loss since Jan
SINGAPORE, April 20 (Reuters) - Brent crude held above $118 a barrel on Friday, but prices were headed for their steepest weekly drop in more than three months as Spain's high borrowing cost kept intact fears that the euro zone debt crisis could flare up again.
"The Spain sovereign debt auction went rather well, but the European economy is still very unstable which is affecting Brent prices," said Yusuke Seta, a Tokyo-based broker at Newedge.
Copper Traders Turn Bullish for First Time in Six Weeks (Source: Bloomberg)
Copper traders are bullish for the first time in six weeks on mounting confidence that demand will accelerate in line with economies at a time when mining companies are already failing to keep up with consumption. Eleven of 29 analysts surveyed by Bloomberg expect the metal to climb next week and 10 were neutral. Rio Tinto Group (RIO), based in London, said April 17 that its first-quarter copper output slid 18 percent because the ore mined contained less metal. Codelco, the largest copper producer, said the following day that it sees no weakening in Chinese buying. Barclays Capital is predicting a third consecutive year of shortages.
The International Monetary Fund raised its global growth forecast for the first time in more than a year on April 17. Industrial production in China, the biggest copper consumer, expanded 11.9 percent in March, exceeding economists’ forecasts, the government said April 13. The Bank of Japan is “committed” to monetary easing to shore up the economy, Governor Masaaki Shirakawa said April 18. “You’re beginning to see an improvement in global growth,” said Nic Brown, the head of research at Natixis Commodity Markets Ltd. in London. “China has a slightly slower growth rate, but the economy itself is growing so rapidly that it represents a very substantial increase in demand. You’re going to have a very substantial copper deficit this year.”
Hedge funds cut their bets on higher commodity prices by the most in four months on mounting concern that Europe’s debt crisis will derail global growth and curb demand for raw materials. Money managers lowered net-long positions across 18 U.S. futures and options by 11 percent to 898,022 contracts in the week ended April 17, the most since Dec. 20, data from the Commodity Futures Trading Commission show. Bets on rising sugar prices fell the most in more than three years, while the funds anticipate declines in cotton, wheat, coffee and natural gas.
A surge in unemployment from Spain to Italy to Greece is undermining efforts to quell the region’s debt as borrowing costs rise. U.S. industrial production stalled for a second month in March, the Federal Reserve said April 17. Home prices in China fell last month in a record 37 of 70 cities tracked by the government, data showed April 18. The “super cycle” that drove an almost fourfold gain in commodity prices since the end of 2001 may be ending, Citigroup Inc. said last week. “Concerns about a global slowdown are growing,” said Walter ‘Bucky’ Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama. “The conditions just aren’t favorable for a commodity rally.”
Rain helps Spanish grain crop in north, not south (Source: CME)
Spain's wheat and barley crops in the northern grain belt may benefit from recent rain after a long drought, but prospects are less encouraging in the south of the major grain importer, a government specialist said on Thursday.
Rainfall in Spain has been above average for the past two weeks. But the crop cycle in the south was already advanced by the end of the driest December-to-February period in 65 years.
GRAINS-U.S. corn rises for 2nd day, soy up on strong demand
SINGAPORE, April 20 (Reuters) - Chicago corn edged higher , building on gains as the market was lifted by talk of Chinese purchases, which could further tighten U.S. supplies estimated at a 16-year low by the end of summer.
"There have been strong rumours that China was buying U.S. corn overnight, but that has yet to be confirmed," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
POLL-S.Africa maize output f'cast seen down to 11.12 mln T
JOHANNESBURG, April 20 (Reuters) - South Africa is likely to further cut its maize output forecast for the 2011/12 season as a late-season drought weighs on yields, a Reuters survey showed on Friday.
The government's Crop Estimates Committee's (CEC) last month cut the its forecast for the season to 11.3 million tonnes on drought worries.
Spring barley favoured as Western Europe replants
LONDON, April 20 (Reuters) - Farmers in western Europe are turning to spring barley and maize as they are forced to replant large swathes of land where severe frosts have destroyed winter crops.
Losses due to severe frost in early February are estimated to have led to the resowing of about 600,000 hectares of winter crops in France, the top cereals producer in the European Union, mainly in the northeast.
India eyes record-large grain harvest -report
SINGAPORE, April 20 (Reuters) - India raised its estimate for wheat and rice output to a record-large 252.56 million tonnes in the year to June, up 3.2 percent from a year ago on crop-friendly weather, the Wall Street Journal reported, quoting unnamed farm ministry officials.
The latest forecast is about 2 million tonnes more than a prior projection of 250.46 million tonnes. The higher estimate is largely because of better-than-expected wheat production following a prolonged winter chill in February and March which improved yields, the report said.
Argentina cuts soy, corn output estimates
BUENOS AIRES, April 19 (Reuters) - Argentina cut its official estimates for this season's soy and corn crops, citing bad weather, while a top grains exchange said lower-than-expected yields may force it to trim its expectations as well.
Argentina, the world's second largest exporter of corn and third largest supplier of soybeans, is set to produce 42.9 million tonnes of soy and 20.3 million tonnes of corn in this crop year, the Agriculture Ministry said on Thursday.
India eyes record-large grain harvest (Source: CME)
India raised its estimate for wheat and rice output to a record-large 252.56 million tonnes in the year to June, up 3.2 percent from a year ago on crop-friendly weather, the Wall Street Journal reported, quoting unnamed farm ministry officials. The latest forecast is about 2 million tonnes more than a prior projection of 250.46 million tonnes. The higher estimate is largely because of better-than-expected wheat production following a prolonged winter chill in February and March which improved yields, the report said.
Recap: Wheat Futures (Source: CME)
Wheat futures settled low-range with nearby contracts leading losses. Chicago wheat ended down 2 3/4 to 9 cents, Kansas City settled 8 to 11 1/2 cents lower and Minneapolis finished roughly a dime to 18 cents lower. Chicago wheat remains in an extended downtrend. The winter wheat crop is off to an early and favorable start, according to USDA’s weekly condition data.
Wheat Market Recap Report (Source: CME)
July Wheat finished down 7 at 623, 11 off the high and 2 1/4 up from the low. December Wheat closed down 5 1/2 at 661 3/4. This was 3 1/4 up from the low and 8 3/4 off the high. May wheat closed 9 cents lower on the session and down 7 3/4 cents for the week. A lack of new crop production concerns, talk of improving crop conditions and the move from higher to lower for the corn market helped to spark the selling pressures. Spring wheat concerns for cold weather into the weekend helped to provide some light support early but sellers were active when corn pushed lower and the market closed lower on the week and experienced "lower lows" for the move this week which will keep technical traders bearish. The UN Food and Agriculture Organization believes that Iran wheat imports for the 2012/13 season will be down 32% to 1.7 million tonnes due to high carryover stocks. July Oats closed down 1 1/2 at 324 1/4. This was 1 1/4 up from the low and 5 1/4 off the high.
Recap: Corn (Source: CME)
Corn ended the day under pressure and posted sharp losses for the week. Futures were supported yesterday by rumors China was on a U.S.-corn-buying binge. That rumor provided followthrough initially this morning, but the lack of confirmation led to late profit-taking. If the Chinese corn purchases are confirmed, key will be whether they are for the current marketing year, new-crop corn or a combination of both.
Corn Market Recap for 4/20/2012 (Source: CME)
July Corn finished down 9 at 603, 16 off the high and 3 1/2 up from the low. December Corn closed down 5 at 536 3/4. This was 4 1/2 up from the low and 8 off the high. May corn closed 8 1/2 cents lower on the session and down 16 3/4 cents for the week. A continued strong cash market and supportive trade in outside markets helped to spark the early rally to just shy of the highs for the week. However, the outlook for favorable planting weather next week may have been a factor to spark selling pressures with the market pushing moderately lower on the day into the mid-session. Rumors of China buying old crop corn were left unconfirmed with no new export sales news from the USDA this morning and this may have added to the negative tone. In addition, bean/corn spread buying may have pressured the market as well. July Rice finished up 0.165 at 15.76, 0.02 off the high and 0.17 up from the low.
U.S. corn rises for 2nd day (Source: CME)
Chicago corn edged higher , building on gains as the market was lifted by talk of Chinese purchases, which could further tighten U.S. supplies estimated at a 16-year low by the end of summer. "There have been strong rumours that China was buying U.S. corn overnight, but that has yet to be confirmed," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
SOFTS-ICE sugar firms, near 11-month low, coffee up
LONDON, April 20 (Reuters) - Raw sugar futures on ICE rose in early trading, bouncing off an 11-month low hit the previous session, while arabica coffee also rose, consolidating above Monday's 18-month low. Raw sugar futures were higher, after falling in the previous session as dealers eyed potential additional exports from India, the world's number 2 producer.
Kingsman trims 2012/13 c/s Brazil cane forecast
LONDON, April 20 (Reuters) - Consultancy Kingsman SA on Friday trimmed its forecast for 2012/13 cane output in centre-south Brazil to 510 million tonnes, from a previous forecast of 520 million tonnes estimated in January.
"The end result is an unchanged sugar estimate of 32.8 million tonnes," Lausanne-based Kingsman said in a statement.
N America Q1 2012 cocoa grind down 4.04 pct yr/yr
NEW YORK, April 19 (Reuters) - North American cocoa grindings in the first quarter dropped 4.04 percent from the upwardly revised year-ago figure, data from the National Confectioners Association showed on Thursday, falling into the lower end of estimates.
Grindings reached 119,022 tonnes in the first quarter, up from the revised data for the first quarter of 2011 at 124,028 tonnes, which was originally reported at 118,633 tonnes.
Brazil 12/13 sugar exports seen up 2 pct-attache
April 19 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:
"Brazil's MY 2012/13 sugarcane crop is forecast at 565 million tonnes, up 4 million tonnes from the previous season (561 million tonnes). Approximately 48.63 percent of the crop should be diverted to sugar, up 0.56 percentage points compared to MY 2011/12 due to continued strong international demand for the product. Total exports for MY 2012/13 are projected at 25.25 million tonnes, raw value, up 2 percent from MY 2011/12."
Analyst says Brazil CS cane crop to fall for 2nd yr
SAO PAULO, April 19 (Reuters) - Leading Brazilian sugar cane analyst Canaplan sees another year of decline in output from the world's largest supplier of sugar, after lingering dry weather crimped the main crop, a local news service said on Thursday.
Canaplan's lead analyst Luiz Carlos Correa Carvalho pegged the 2012/13 center-south cane crush at 470 million tonnes, down from the 493 million crushed last season, in his first forecast of the year published by the Agencia Estado newswire.
Forecasts for Brazil's 2012/13 CS cane crop
April 19 (Reuters) - Brazil's center-south 2012/13 sugarcane harvest is struggling to expand this year after disappointing output in the 2011/12 season due to a mixture of bad weather and overdue replanting of ageing cane plants.
The new crushing season started in April. Although planting of cane has expanded, dry weather persists over the main growing areas which will limit the recovery of the crop in the world's largest sugar exporter.
Oil Trades Near Three-Day High in New York Before Economic Data (Source: Bloomberg)
Oil traded near the highest close in three days before reports that may show a strengthening of the economy in the U.S., the world’s biggest crude consumer. Futures were little changed in New York after rising 0.2 percent last week. Consumer purchases that account for about 70 percent of the U.S. economy probably climbed by the most since the end of 2010, according to a Bloomberg News survey before an April 27 Commerce Department report. Iraq halted crude exports from northern fields because of a technical fault at a pipeline network in neighboring Turkey, the Oil Ministry said. Crude for June delivery was at $103.77 a barrel, down 11 cents, in electronic trading on the New York Mercantile Exchange at 9:40 a.m. Sydney time. The contract rose 1.1 percent to $103.88 on April 20, the highest close since April 17. Front- month prices are 5 percent higher this year.
Brent oil for June settlement was at $118.63 a barrel, down 13 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s front month premium to West Texas Intermediate was at $14.85, from $14.88 on April 20. Iraq’s crude exports stopped at 7:45 p.m. on April 21, the ministry said in a statement on the website of the official National Media Center yesterday. The nation normally exports 450,000 to 500,000 barrels a day from northern fields through Turkey. It ships most of its oil from the south on tankers sailing from the Persian Gulf.
Cheap European gasoline set to hit U.S. market
--Robert Campbell is a Reuters market analyst. The views expressed are his own--
NEW YORK, April 19 (Reuters) - U.S. gasoline traders are bracing for higher imports from Europe as a slump in European benchmark prices has re-opened the door to arbitrage shipments to the New York Harbor.
European cash gasoline prices spiked in late March as heavy regional refinery maintenance cut into supplies, sending cash Eurobob gasoline blendstock prices in the Amsterdam-Rotterdam-Antwerp hub above New York Harbor cash RBOB gasoline prices.
OIL-Brent steady above $118, eyeing biggest weekly loss since Jan
SINGAPORE, April 20 (Reuters) - Brent crude held above $118 a barrel on Friday, but prices were headed for their steepest weekly drop in more than three months as Spain's high borrowing cost kept intact fears that the euro zone debt crisis could flare up again.
"The Spain sovereign debt auction went rather well, but the European economy is still very unstable which is affecting Brent prices," said Yusuke Seta, a Tokyo-based broker at Newedge.
Copper Traders Turn Bullish for First Time in Six Weeks (Source: Bloomberg)
Copper traders are bullish for the first time in six weeks on mounting confidence that demand will accelerate in line with economies at a time when mining companies are already failing to keep up with consumption. Eleven of 29 analysts surveyed by Bloomberg expect the metal to climb next week and 10 were neutral. Rio Tinto Group (RIO), based in London, said April 17 that its first-quarter copper output slid 18 percent because the ore mined contained less metal. Codelco, the largest copper producer, said the following day that it sees no weakening in Chinese buying. Barclays Capital is predicting a third consecutive year of shortages.
The International Monetary Fund raised its global growth forecast for the first time in more than a year on April 17. Industrial production in China, the biggest copper consumer, expanded 11.9 percent in March, exceeding economists’ forecasts, the government said April 13. The Bank of Japan is “committed” to monetary easing to shore up the economy, Governor Masaaki Shirakawa said April 18. “You’re beginning to see an improvement in global growth,” said Nic Brown, the head of research at Natixis Commodity Markets Ltd. in London. “China has a slightly slower growth rate, but the economy itself is growing so rapidly that it represents a very substantial increase in demand. You’re going to have a very substantial copper deficit this year.”
20120423 1025 Soy Oil & Palm Oil Related News.
Recap: Soybean Futures (Source: CME)
Soybean futures rallied sharply into the close to finish 20 1/4 to 31 cents higher in the May through September contracts. New-crop futures posted lesser gains, with the November contract 13 1/2 cents higher. For the week, old-crop contracts finished higher and new-crop contracts posted slight losses. Rumors of decreased South American exports and increased demand for U.S. soybeans triggered the strong price rally into the weekend.
Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 28 1/2 at 1449 1/2, 9 1/4 off the high and 31 1/2 up from the low. November Soybeans closed up 13 1/2 at 1356. This was 16 up from the low and 8 3/4 off the high. July Soymeal closed up 14.5 at 409.9. This was 14.8 up from the low and 2.1 off the high. July Soybean Oil finished up 0.69 at 56.28, 0.02 off the high and 0.79 up from the low. May soybeans closed 31 cents higher on the session and managed to close 10 cents higher on the week. Aggressive fund traders buying, especially into the close, helped to support the strong gains and helped push the market to the highest level since early September. Talk of large positions short the 1420's, 1430's and 1440 strike prices for the expiring May calls today was seen as a factor to fuel the buying as the shorts rushed to own long futures as an offset to the short call positions. Grain markets were higher early today led by continued talk of strong demand for old crop soybeans and a bullish tilt to outside market forces. Concerns that there could be another drop of near 2-3 million tonnes for South America production for the May USDA report helped to support the early rally. Weakness in corn and wheat helped pull the market well off of the early highs into the mid-session. Open interest forged another new all-time high of 817,841 contracts as compared with 551,998 at the beginning of March.
Palm oil slips on euro zone fears, US data (Source: CME)
Malaysian palm oil futures inched down, weighed by lower export data and concerns about the global economy prompted by lacklustre U.S. economic data and the euro zone. "The market will still close lower again ... there is no fresh bullish news yet even though the April 1-20 export seems to be a bit better than what people are expecting," said a trader with a commodities house in Singapore.
Argentina cuts soy, corn output estimates (Source: CME)
Argentina cut its official estimates for this season's soy and corn crops, citing bad weather, while a top grains exchange said lower-than-expected yields may force it to trim its expectations as well.
Argentina, the world's second largest exporter of corn and third largest supplier of soybeans, is set to produce 42.9 million tonnes of soy and 20.3 million tonnes of corn in this crop year, the Agriculture Ministry said on Thursday.
VEGOILS-Palm oil slips on euro zone fears, US data
SINGAPORE, April 20 (Reuters) - Malaysian palm oil futures inched down, weighed by lower export data and concerns about the global economy prompted by lacklustre U.S. economic data and the euro zone.
"The market will still close lower again ... there is no fresh bullish news yet even though the April 1-20 export seems to be a bit better than what people are expecting," said a trader with a commodities house in Singapore.
Disease, frost seen shrinking EU rapeseed harvest
PARIS, April 19 (Reuters) - The European Union's rapeseed harvest could shrink this year for the second year running as plant disease in top producers Germany and France follows a severe winter frost and a long dry spell, analysts said.
A drop in production would further strain tight rapeseed supplies in the EU, making the region more dependent on imports and raising the prospect of further price rises on top of one-year highs on the Paris futures market this month. -
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