Malaysia: Sees improved spending capability
A robust turnaround in consumer spending is expected in 2010 across Asia-Pacific, with double-digit retail sales growth predicted in China, Hong Kong, India, Indonesia, South Korea, Malaysia and Singapore as a result of improving fundamentals, according to indications provided by the inaugural MasterCard Worldwide Index of Consumer Spending Capability (MWICSC). The new index has been developed to provide insights into consumer spending over a period of one year. Malaysia’s MWICSC score shows a modest increase of 5.7 points in 2010, raising the index value to 63.0, indicating that spending capability is rising for consumers. (Financial Daily)
Singapore: May need to ‘tighten screws’ after record expansion
Singapore may be forced to consider allowing further gains in its currency after a record first-half expansion put the economy in contention for the world’s fastest-growing this year. The government yesterday reported an 18.1% surge in gross domestic product in the first half, unprecedented in data going back to 1975. Record tourist arrivals are benefiting companies from Singapore Airlines Ltd. to casino operator Las Vegas Sands Corp., while a two-year-low jobless rate has helped spur a 38% jump in house prices in the past 12 months. (Bloomberg)
China: Stimulus ‘Relapse’ beckons for China as growth slows
China’s slowing expansion may encourage officials to shift policy toward sustaining the rebound in the economy forecast to account for one-third of global growth this year. A government report will show gross domestic product rose 10.5% in the second quarter from a year earlier, according to the median estimate in a Bloomberg News survey of 28 economists, down from an 11.9% pace in January to March. Industrial production and urban fixed-asset investment are also estimated to have slowed. (Bloomberg)
Japan: IMF says Japanese fiscal plans need specifics to be credible
The International Monetary Fund said Japan’s plan to balance its budget in 10 years would be more credible if the government gave specifics on how it will boost revenue, including details on a sales tax increase. Prime Minister Naoto Kan’s fiscal strategy outlined last month “will only become fully credible once details of the necessary revenue measures are agreed on including the timing and scale of a consumption tax increase,” the IMF staff wrote in a supplement to its annual review of Japan’s economy. (Bloomberg)
US: Fed officials saw no need for more stimulus in June
Federal Reserve officials saw no need to boost stimulus to the economy while trimming their forecasts for growth and noting that risks to the recovery had increased, minutes of their June meeting showed. “The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside,” minutes released in Washington said. “The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.” (Bloomberg)
US: Retail sales decrease as recovery cools
Sales at US retailers dropped in June for a second month, indicating the economic recovery dissipated heading into the second half of 2010. Purchases decreased 0.5%, more than projected, after declining 1.1% in May, Commerce Department figures showed. Excluding auto dealers, demand fell 0.1%, matching the median forecast of economists surveyed by Bloomberg News. (Bloomberg)
Thursday, July 15, 2010
20100715 1053 Malaysia Corporate News.
Jetson boardroom tussle brewing?
Kumpulan Jetson's shares tumbled yesterday amid fears of a boardroom tussle, as the company temporarily halted trading of its shares to announce the surprise retraction of a director's earlier resignation. The counter tumbled 22 sen, or 16.5%, after it announced the hour-long trading halt from 9am. According to sources, a feud is understood to be brewing between the sons of the late Tan Sri SM Nasimuddin SM Amin (of Naza Group fame), namely Jetson’s chairman and executive director Sheikh Mohd Nasarudin and his brother, executive director Sheikh Mohamad Faliq Sheikh Mohamad Nasimuddin Kamal in one camp, and another faction led by Datuk Teh Kian Ann, Jetson’S Managing Director. In an announcement yesterday, Jetson said an independent director, Mohd Abdul Aziz, had retracted his resignation announced to Bursa Malaysia Securities about a week ago on 7 July. (Financial Daily)
UMW Toyota to locally assemble Camry by mid-2012
UMW Toyota Motor SB, a joint venture of UMW Holdings, Japan Toyota Motor Corp and Toyota Tsusho Corp, is targeting to locally assemble Camry models by mid-2012 as part of its RM170m assembly plant upgrading program. It was conducting technical studies on its assembly plant capacity and was in talks with local suppliers to see how local content could be used in its production. The new Camry assembly plant is part of UMW Toyota’s total investment of RM370m to improve production line and build a new centralized stockyard. (Financial Daily)
Gamuda, MMC eye tunnel works
Gamuda and MMC Corp plan to bid for the RM14bn tunnelling works if their joint-venture mass rapid transit (MRT) system proposal is accepted by the Government, said Gamuda group managing director Datuk Lin Yun Ling. “The tunnelling or underground works cover about 30% of the whole project involving 26 stations, mostly located in the city centre out of the total of 90-plus new stations in the MRT prosposal,” he said, adding that the proposed project could be divided into three major phases where the development would be stretched over 10 years. The RM36bn joint MRT proposal by Gamuda and MMC is now under feasibility studies by two government-appointed independent consultants that will be concluded in three months. Lin said both Gamuda and MMC were also interested in overseeing the whole project. (StarBiz)
Keck Seng to get mandate over Parkway stake
Plantation and property firm Keck Seng’s board has decided to obtain a shareholders’ mandate in respect of the company’s stake in Singapore-listed healthcare provider Parkway Holdings Ltd. Keck Seng has 35.58m shares representing a 3.13% stake in Parkway, a company in which Khazanah Nasional and Fortis Healthcare Ltd, are battling for control over. Fortis is controlled by billionaire brothers Malvinder and Shivinder Singh. They are Parkway’s single largest shareholder with a 25.3% stake while Khazanah has a 23.8% stake. (StarBiz)
SC rejects WWE’s restructuring plan
WWE Holdings has failed to get its proposed restructuring scheme approved by the Securities Commission (SC) due to non-compliance with the Equity Guidelines. “The board will consider options available to WWE, including an appeal to the SC and will make an announcement on this matter in due course,” it said yesterday. Under paragraph 7.03(a) of the SC Equity Guidelines, the assets to be acquired must comply with the profit requirements while 7.05(b) states the assets to be injected must have a healthy financial position. (Financial Daily)
Kumpulan Jetson's shares tumbled yesterday amid fears of a boardroom tussle, as the company temporarily halted trading of its shares to announce the surprise retraction of a director's earlier resignation. The counter tumbled 22 sen, or 16.5%, after it announced the hour-long trading halt from 9am. According to sources, a feud is understood to be brewing between the sons of the late Tan Sri SM Nasimuddin SM Amin (of Naza Group fame), namely Jetson’s chairman and executive director Sheikh Mohd Nasarudin and his brother, executive director Sheikh Mohamad Faliq Sheikh Mohamad Nasimuddin Kamal in one camp, and another faction led by Datuk Teh Kian Ann, Jetson’S Managing Director. In an announcement yesterday, Jetson said an independent director, Mohd Abdul Aziz, had retracted his resignation announced to Bursa Malaysia Securities about a week ago on 7 July. (Financial Daily)
UMW Toyota to locally assemble Camry by mid-2012
UMW Toyota Motor SB, a joint venture of UMW Holdings, Japan Toyota Motor Corp and Toyota Tsusho Corp, is targeting to locally assemble Camry models by mid-2012 as part of its RM170m assembly plant upgrading program. It was conducting technical studies on its assembly plant capacity and was in talks with local suppliers to see how local content could be used in its production. The new Camry assembly plant is part of UMW Toyota’s total investment of RM370m to improve production line and build a new centralized stockyard. (Financial Daily)
Gamuda, MMC eye tunnel works
Gamuda and MMC Corp plan to bid for the RM14bn tunnelling works if their joint-venture mass rapid transit (MRT) system proposal is accepted by the Government, said Gamuda group managing director Datuk Lin Yun Ling. “The tunnelling or underground works cover about 30% of the whole project involving 26 stations, mostly located in the city centre out of the total of 90-plus new stations in the MRT prosposal,” he said, adding that the proposed project could be divided into three major phases where the development would be stretched over 10 years. The RM36bn joint MRT proposal by Gamuda and MMC is now under feasibility studies by two government-appointed independent consultants that will be concluded in three months. Lin said both Gamuda and MMC were also interested in overseeing the whole project. (StarBiz)
Keck Seng to get mandate over Parkway stake
Plantation and property firm Keck Seng’s board has decided to obtain a shareholders’ mandate in respect of the company’s stake in Singapore-listed healthcare provider Parkway Holdings Ltd. Keck Seng has 35.58m shares representing a 3.13% stake in Parkway, a company in which Khazanah Nasional and Fortis Healthcare Ltd, are battling for control over. Fortis is controlled by billionaire brothers Malvinder and Shivinder Singh. They are Parkway’s single largest shareholder with a 25.3% stake while Khazanah has a 23.8% stake. (StarBiz)
SC rejects WWE’s restructuring plan
WWE Holdings has failed to get its proposed restructuring scheme approved by the Securities Commission (SC) due to non-compliance with the Equity Guidelines. “The board will consider options available to WWE, including an appeal to the SC and will make an announcement on this matter in due course,” it said yesterday. Under paragraph 7.03(a) of the SC Equity Guidelines, the assets to be acquired must comply with the profit requirements while 7.05(b) states the assets to be injected must have a healthy financial position. (Financial Daily)
20100715 1049 Global Market News.
GLOBAL MARKETS: Asian stocks weak after Fed; China GDP eyed
HONG KONG, July 15 (Reuters) - Asian stocks fell in early trade on Thursday after a downbeat assessment of the economic recovery by the U.S. Federal Reserve and with caution prevailing ahead of China's second quarter GDP data. The dollar was under pressure, holding near two month lows on a basket of currencies, while high yielding currencies such as the Australian dollar and the New Zealand dollar may be sold off if the Chinese data disappointed.
July 15 (Bloomberg) -
HONG KONG, July 15 (Reuters) - Asian stocks fell in early trade on Thursday after a downbeat assessment of the economic recovery by the U.S. Federal Reserve and with caution prevailing ahead of China's second quarter GDP data. The dollar was under pressure, holding near two month lows on a basket of currencies, while high yielding currencies such as the Australian dollar and the New Zealand dollar may be sold off if the Chinese data disappointed.
July 15 (Bloomberg) -
U.S. trade gap widens in May, tempers GDP forecasts
WASHINGTON, July 13 (Reuters) - The U.S. trade deficit widened unexpectedly in May, prompting analysts to ratchet back estimates for second quarter economic growth despite signs of increased demand both at home and abroad.
The trade gap grew to $42.3 billion, the largest since November 2008, as imports from China soared 12.1 percent, helping overpower the best month for U.S. exports since September 2008, the Commerce Department said on Tuesday.
20100715 1035 Soy Oil & Palm Oil Related News.
SGS Export up 16.4% to 708,384 tonnes for the period of 1~15 Jul 2010
ITS Export up 11.3% to 668,573 tonnes for the period of 1~15 Jul 2010
Soyoil futures inched higher, keeping pace with advances in the rest of the complex. However, advances were limited by adjustments in the meal/oil spread relationship, and a larger-than-expected buildup of June soyoil stocks reported by National Oilseed Processors Association. December soyoil settled 0.09 cent, or 0.2%, higher at 38.90 cents per pound.(Source: CME)
Boom In US Soyoil Sales To China May End - US Group(Source:CME)
The recent boom in U.S. soyoil sales to China may stop as quick as it started if Argentine producers are allowed back into the competition, a U.S. Soybean Export Council official said Tuesday.
China stopped buying soyoil from Argentina in April during a trade spat between the two countries and U.S. exporters soon stepped in to fill the void. The U.S. has sold about 200,000 tons of soyoil to China in a matter of weeks during June and July.
The Argentine government has been working to regain China as a soyoil customer and if that happens, U.S. Soybean Export Council Director Paul Burke said, the U.S. will once again not be able to compete.
Argentina, through the use of differential export taxes, subsidizes the exportation of soyoil, Burke said. No mater what U.S. exporters do, Argentine product will be cheaper.
If China and Argentina resolve their differences and China agrees to resume importing soyoil from the South American country, the U.S. will devolve back into a residual supplier, only making infrequent sales, Burke told Dow Jones Newswires.
China is the world's largest soyoil-importing country and Argentine President Cristina Fernandez is expected to try and woo the country back as a customer during her trip this week to Beijing.
China is expected to import 1.6 million tons of soyoil in the 2009-10 marketing year and 2.15 million tons in 2010-11, according to U.S. Department of Agriculture predictions.
One development stemming from the recent U.S. sales to China is the country's decision to conduct a risk assessment on U.S. soyoil. USDA and exporters have said they hope that assessment will result in China no longer requiring individual phytosanitary certificates to show that shipments of U.S. soyoil aren't contaminated.
If that happens, it will boost U.S. soyoil export opportunities in China even if Argentina does return as China's primary supplier, according to Burke and American Soybean Association Vice President Steve Wellman.
India June Vegetable Oil Imports Fall 6.2% To 732,232 Tons(Source: CME)
India's vegetable oil imports during June fell 6.2% from a year earlier to 732,232 metric tons due to higher imports in the previous few months and large stocks at ports, the Solvent Extractors' Association said Wednesday.
Total vegetable oil imports during the first eight months of the marketing year that began Nov. 1 fell to 5.6 million tons from 5.8 million tons in the same period a year earlier, the trade body said in a statement.
The South Asian nation, the world's second-largest vegetable oil importer after China, bought 692,952 tons of edible oil in June, compared with 742,481 tons a year earlier, it added.
Indian companies imported higher quantities in the November-January period due to fears the government may impose a tax on crude edible oils and increase the import duty on refined edible oils from the current 7.5%. However, the companies pared imports in later months after the government kept the tax structure unchanged and stocks at ports started piling up.
The trade body said total edible oil stocks at ports were estimated at 550,000 tons as of July 1, which comprises 270,000 tons of crude palm oil, 65,000 tons of refined, bleached and deodorized palm olein, 160,000 tons of soyoil and 60,000 tons of sunflower oil.
Also, there are current contracts to import another 560,000 tons of edible oil, it added.
The trade body also said India imported 421,462 tons of crude palm oil in June, while RBD palm olein imports stood at 42,282 tons.
Soyoil imports fell 25.5% to 192,649 tons, while imports of sunflower oil also declined 37% to 34,559 tons during the period, it added.
India imports palm oil mostly from Indonesia and Malaysia and soyoil from Argentina and Brazil.
Imports of non-edible oils rose 3% to 39,280 tons during June. Non-edible oil is mainly used to make soaps and detergents, and for various other industrial purposes.
Palm at 2-week high on output worry, crude oil
JAKARTA, July 14 (Reuters) - Malaysian crude palm oil rose to a 2-week high on midday Wednesday, buoyed by expectations of low stocks because of a production slowdown and gains in crude oil.
"The production number was basically bullish, stocks were lower than expected. It formed a base for the market to rebound from the low," said a trader in a foreign-brokerage firm in Kuala Lumpur.
India June vegoil imports fall for 6th straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell for the sixth straight month in June, dropping by 6 percent from a year ago on higher stocks at the ports, a leading trade body said on Wednesday.
June imports of vegetable oils dropped to 732,232 tonnes from 780,679 tonnes a year ago, the Solvent Extractors' Association said in a statement.
ITS Export up 11.3% to 668,573 tonnes for the period of 1~15 Jul 2010
Soyoil futures inched higher, keeping pace with advances in the rest of the complex. However, advances were limited by adjustments in the meal/oil spread relationship, and a larger-than-expected buildup of June soyoil stocks reported by National Oilseed Processors Association. December soyoil settled 0.09 cent, or 0.2%, higher at 38.90 cents per pound.(Source: CME)
Boom In US Soyoil Sales To China May End - US Group(Source:CME)
The recent boom in U.S. soyoil sales to China may stop as quick as it started if Argentine producers are allowed back into the competition, a U.S. Soybean Export Council official said Tuesday.
China stopped buying soyoil from Argentina in April during a trade spat between the two countries and U.S. exporters soon stepped in to fill the void. The U.S. has sold about 200,000 tons of soyoil to China in a matter of weeks during June and July.
The Argentine government has been working to regain China as a soyoil customer and if that happens, U.S. Soybean Export Council Director Paul Burke said, the U.S. will once again not be able to compete.
Argentina, through the use of differential export taxes, subsidizes the exportation of soyoil, Burke said. No mater what U.S. exporters do, Argentine product will be cheaper.
If China and Argentina resolve their differences and China agrees to resume importing soyoil from the South American country, the U.S. will devolve back into a residual supplier, only making infrequent sales, Burke told Dow Jones Newswires.
China is the world's largest soyoil-importing country and Argentine President Cristina Fernandez is expected to try and woo the country back as a customer during her trip this week to Beijing.
China is expected to import 1.6 million tons of soyoil in the 2009-10 marketing year and 2.15 million tons in 2010-11, according to U.S. Department of Agriculture predictions.
One development stemming from the recent U.S. sales to China is the country's decision to conduct a risk assessment on U.S. soyoil. USDA and exporters have said they hope that assessment will result in China no longer requiring individual phytosanitary certificates to show that shipments of U.S. soyoil aren't contaminated.
If that happens, it will boost U.S. soyoil export opportunities in China even if Argentina does return as China's primary supplier, according to Burke and American Soybean Association Vice President Steve Wellman.
India June Vegetable Oil Imports Fall 6.2% To 732,232 Tons(Source: CME)
India's vegetable oil imports during June fell 6.2% from a year earlier to 732,232 metric tons due to higher imports in the previous few months and large stocks at ports, the Solvent Extractors' Association said Wednesday.
Total vegetable oil imports during the first eight months of the marketing year that began Nov. 1 fell to 5.6 million tons from 5.8 million tons in the same period a year earlier, the trade body said in a statement.
The South Asian nation, the world's second-largest vegetable oil importer after China, bought 692,952 tons of edible oil in June, compared with 742,481 tons a year earlier, it added.
Indian companies imported higher quantities in the November-January period due to fears the government may impose a tax on crude edible oils and increase the import duty on refined edible oils from the current 7.5%. However, the companies pared imports in later months after the government kept the tax structure unchanged and stocks at ports started piling up.
The trade body said total edible oil stocks at ports were estimated at 550,000 tons as of July 1, which comprises 270,000 tons of crude palm oil, 65,000 tons of refined, bleached and deodorized palm olein, 160,000 tons of soyoil and 60,000 tons of sunflower oil.
Also, there are current contracts to import another 560,000 tons of edible oil, it added.
The trade body also said India imported 421,462 tons of crude palm oil in June, while RBD palm olein imports stood at 42,282 tons.
Soyoil imports fell 25.5% to 192,649 tons, while imports of sunflower oil also declined 37% to 34,559 tons during the period, it added.
India imports palm oil mostly from Indonesia and Malaysia and soyoil from Argentina and Brazil.
Imports of non-edible oils rose 3% to 39,280 tons during June. Non-edible oil is mainly used to make soaps and detergents, and for various other industrial purposes.
Palm at 2-week high on output worry, crude oil
JAKARTA, July 14 (Reuters) - Malaysian crude palm oil rose to a 2-week high on midday Wednesday, buoyed by expectations of low stocks because of a production slowdown and gains in crude oil.
"The production number was basically bullish, stocks were lower than expected. It formed a base for the market to rebound from the low," said a trader in a foreign-brokerage firm in Kuala Lumpur.
India June vegoil imports fall for 6th straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell for the sixth straight month in June, dropping by 6 percent from a year ago on higher stocks at the ports, a leading trade body said on Wednesday.
June imports of vegetable oils dropped to 732,232 tonnes from 780,679 tonnes a year ago, the Solvent Extractors' Association said in a statement.
Wednesday, July 14, 2010
20100714 1813 FCPO EOD Daily Chart Study.
Bollinger band reading : correction downside biased.
MACD Histrogram : getting higher, buyer taking exposure.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
5th consecutive up day FCPO continue to closed higher in diminishing volume transaction following crude oil and soy oil futures price development.
Daily chart wise, market successfully break and closed above another resistant level and the outlook still shows a correction downside biased reading.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.
20100714 1806 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : continue higher, buyer seized control.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Range bound market FKLI closed in positive zone with better volume transacted. Daily chart shows that market touched nearly 2 months high but profit taking activities pressed price to closed near the low. Reading remained unchanged with an upside biased outlook.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100714 1328 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : continue higher, buyer in charge.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
FKLI upwards momentum continue today and ended the first session better with sustaining volume traded. Market opened gap up and traded in 6 points range bound as buyer decide to lock in partial profit. Outlook wise, market still having a upside biased reading with possible pullback correction.
20100714 1310 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer increase exposure.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Firmer overnight crude oil and soy oil futures price lead FCPO to trade higher in light volume transaction.
Hourly chart shows that market opened and continue to seek higher ground breaking and stayed above 2370 resistant level. Outlook wise, market still registering an upside biased reading with possible pullback correction to take place soon.
20100714 1208 Global Economic News.
Philippines: Export growth quickens, boosting economy
Philippine exports rose at a faster pace in May as the global recovery spurred demand for electronics, sustaining the nation’s economic expansion and supporting President Benigno Aquino’s efforts to boost incomes. Shipments abroad increased 37.3% from a year earlier to USD4.24bn after climbing a revised 28.2% in April, the National Statistics Office said in Manila. (Bloomberg)
India: May increase rates, Singh’s advisers signal
The Reserve Bank of India may raise interest rates for a second time this month to slow inflation, Prime Minister Manmohan Singh’s top economic advisers signaled. “If inflation persists at double digit levels for several months together, some action by the Reserve Bank is required,” Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said in New Delhi. (Bloomberg)
Japan: May hold policy stance on rebound at risk from Europe
The Bank of Japan may refrain from easing monetary policy tomorrow, choosing to preserve its arsenal in case economic weakness in Europe or a further advance in the yen threatens the nation’s export-led recovery. Governor Masaaki Shirakawa and his board will keep the main interest rate at 0.1% and forgo fresh liquidity injections, according to all 16 economists surveyed. Shirakawa said last week that the economy is “likely to stay on a recovery trend” and domestic demand is poised to rise. (Bloomberg)
UK: Inflation slows less than economists forecast
UK inflation slowed less than economists forecast in June as higher costs of goods from fuel to food kept the rate of price increases above the government’s 3% limit. Consumer prices rose 3.2% from a year earlier, compared with 3.4% in May, the Office for National Statistics said in London. Economists predicted 3.1%, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)
US: Trade deficit unexpectedly widened in May
The trade deficit in the US unexpectedly widened in May to the highest level in 18 months as a gain in imports outpaced an increase in shipments abroad. The gap expanded 4.8% to USD42.3bn as US companies imported more automobiles and consumer goods, Commerce Department figures showed in Washington. The deficit was projected to narrow to USD39 bn, according to the median forecast. (Bloomberg)
US: June budget deficit narrowed to USD68.4bn
The US government posted a smaller budget deficit in June compared with the same month last year as the economic recovery brought in more tax revenue. The excess of spending over receipts fell to USD68.4bn last month from USD94.3bn in June 2009, according to a Treasury Department report issued. It was the 21st consecutive shortfall. For the fiscal year to date, the budget deficit totaled USD1trn compared with USD1.42tn during the prior year to date. (Bloomberg)
U.S : Small-business confidence drops to three-month low in June as projections for profits, sales and economic conditions weakened. The National Federation of Independent Business's optimism index decreased to 89 from May's 92.2 reading that was the highest since September 2008. Seven of the index's 10 components dropped, led by a decline in the economic outlook six months from now. (Source: Bloomberg)
Germany : Investor sentiment drops in July as stress tests loom. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to a 15-month low of 21.2 from 28.7 in June. (Source: Bloomberg)
Portugal : Credit rating cut two notches to A1 at Moody's Investors Service because of a growing debt burden and weak economic growth prospects. "The Portuguese government's financial strength will continue to weaken over the medium term," Moody's said in a statement, adding that the outlook is stable. "The Portuguese economy's growth prospects are likely to remain relatively weak unless recent structural reforms bear fruit over the medium-to-longer term." (Source: Bloomberg)
Japan : The public pension fund sold more government bonds than it bought for the first time in nine years, underscoring concern that an aging population will make domestic investors less able to finance state borrowings. The fund sold a net JPY 443.2b (USD 5b) of Japanese government bonds in the year ended March 31. (Source: Bloomberg)
Australia : Business confidence little changed in June after falling the previous three months, as retail and wholesale companies reported improved sentiment. The confidence index dropped 1 point from May to 4, according to a National Australia Bank Ltd. survey of more than 500 companies between June 24 and June 30. (Source: Bloomberg)
Crude Oil : IEA forecasts world oil demand growth to slow in 2011 as advanced nations trail China and other developing countries. Worldwide daily crude oil consumption will climb 1.3 million barrels, or 1.6% YoY, to average 87.8 million a day, the Paris-based adviser said in a monthly report, leaving its estimate for this year unchanged at 86.5 million. (Source: Bloomberg)
Philippine exports rose at a faster pace in May as the global recovery spurred demand for electronics, sustaining the nation’s economic expansion and supporting President Benigno Aquino’s efforts to boost incomes. Shipments abroad increased 37.3% from a year earlier to USD4.24bn after climbing a revised 28.2% in April, the National Statistics Office said in Manila. (Bloomberg)
India: May increase rates, Singh’s advisers signal
The Reserve Bank of India may raise interest rates for a second time this month to slow inflation, Prime Minister Manmohan Singh’s top economic advisers signaled. “If inflation persists at double digit levels for several months together, some action by the Reserve Bank is required,” Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said in New Delhi. (Bloomberg)
Japan: May hold policy stance on rebound at risk from Europe
The Bank of Japan may refrain from easing monetary policy tomorrow, choosing to preserve its arsenal in case economic weakness in Europe or a further advance in the yen threatens the nation’s export-led recovery. Governor Masaaki Shirakawa and his board will keep the main interest rate at 0.1% and forgo fresh liquidity injections, according to all 16 economists surveyed. Shirakawa said last week that the economy is “likely to stay on a recovery trend” and domestic demand is poised to rise. (Bloomberg)
UK: Inflation slows less than economists forecast
UK inflation slowed less than economists forecast in June as higher costs of goods from fuel to food kept the rate of price increases above the government’s 3% limit. Consumer prices rose 3.2% from a year earlier, compared with 3.4% in May, the Office for National Statistics said in London. Economists predicted 3.1%, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)
US: Trade deficit unexpectedly widened in May
The trade deficit in the US unexpectedly widened in May to the highest level in 18 months as a gain in imports outpaced an increase in shipments abroad. The gap expanded 4.8% to USD42.3bn as US companies imported more automobiles and consumer goods, Commerce Department figures showed in Washington. The deficit was projected to narrow to USD39 bn, according to the median forecast. (Bloomberg)
US: June budget deficit narrowed to USD68.4bn
The US government posted a smaller budget deficit in June compared with the same month last year as the economic recovery brought in more tax revenue. The excess of spending over receipts fell to USD68.4bn last month from USD94.3bn in June 2009, according to a Treasury Department report issued. It was the 21st consecutive shortfall. For the fiscal year to date, the budget deficit totaled USD1trn compared with USD1.42tn during the prior year to date. (Bloomberg)
U.S : Small-business confidence drops to three-month low in June as projections for profits, sales and economic conditions weakened. The National Federation of Independent Business's optimism index decreased to 89 from May's 92.2 reading that was the highest since September 2008. Seven of the index's 10 components dropped, led by a decline in the economic outlook six months from now. (Source: Bloomberg)
Germany : Investor sentiment drops in July as stress tests loom. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to a 15-month low of 21.2 from 28.7 in June. (Source: Bloomberg)
Portugal : Credit rating cut two notches to A1 at Moody's Investors Service because of a growing debt burden and weak economic growth prospects. "The Portuguese government's financial strength will continue to weaken over the medium term," Moody's said in a statement, adding that the outlook is stable. "The Portuguese economy's growth prospects are likely to remain relatively weak unless recent structural reforms bear fruit over the medium-to-longer term." (Source: Bloomberg)
Japan : The public pension fund sold more government bonds than it bought for the first time in nine years, underscoring concern that an aging population will make domestic investors less able to finance state borrowings. The fund sold a net JPY 443.2b (USD 5b) of Japanese government bonds in the year ended March 31. (Source: Bloomberg)
Australia : Business confidence little changed in June after falling the previous three months, as retail and wholesale companies reported improved sentiment. The confidence index dropped 1 point from May to 4, according to a National Australia Bank Ltd. survey of more than 500 companies between June 24 and June 30. (Source: Bloomberg)
Crude Oil : IEA forecasts world oil demand growth to slow in 2011 as advanced nations trail China and other developing countries. Worldwide daily crude oil consumption will climb 1.3 million barrels, or 1.6% YoY, to average 87.8 million a day, the Paris-based adviser said in a monthly report, leaving its estimate for this year unchanged at 86.5 million. (Source: Bloomberg)
20100714 1207 Malaysia Corporate News.
PAAB to sign deal with Perlis next month
Notwithstanding the problems in the Selangor Water restructuring sector, Pengurusan Aset Air (PAAB) will seal its deal with the Perlis government early next month, according to a source. It is understood that a press conference for this purpose will be called on 2 Aug. The deal, which was supposed to be sealed by end-May, “ran into the usual red tape” issues but everything was confirmed now and the signing would take place in early August, the source said. He declined to divulge the value of the deal but said it would follow largely in the footsteps of the takeover of water assets in Johor which were acquired at one time book value and was concluded on a “willing-buyer-willing-seller” basis. (Starbiz)
BRDB to jointly develop 2 parcels of MPHB’s land
Bandar Raya Developments (BRDB) is teaming up with Multi-Purpose Holdings group to develop several parcels of land measuring a total of 670.7 acres belonging to the latter in Penang, Rawang and Gombak. BRDB had on the same day entered into three separate memoranda of understanding (MoUs) with MPHB to record their intention to collaborate with each other on the proposed development of the land in Penang (80 acres), Rawang (266.7 acres) and Gombak ((324 acres). (FinancialDaily)
Nestle investing RM20m to raise Kit Kat plant output
Nestle (M) will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan. Nestle Products SB business executive manager (confectionary division) Andrew Cooper said this would increase the plant’s capacity by 30%. (Starbiz)
Petra Energy gets new director
Integrated oil and gas brown field services provider Petra Energy has appointed three new directors – Abdul Rahim Hamid, Ahmad Azra Salled and Surya Hidayat Abdul Malik – effective yesterday. Abdul Rahim and Ahmad Azra were independent and non-executive directors while Petra Perdana executive director Surya Hidayat was a non-independent and non-executive director. (Starbiz)
MMosaics to be privatised at RM2.30 a share
Malaysian Mosaics announced yesterday that the company has received a privatisation proposal from its major shareholder, Gek Poh (Holdings) SB, at RM2.30 cash per share. The privatisation will be done via a selective capital repayment exercise whereby all minority shareholders of MMosaics (except Gek Poh and its subsidiary, Pembangunan Melati SB), will receive a cash payment of RM2.30 per share. The existing paid-up share capital of MMosaics will be reduced by cancelling all the ordinary shares issued and the company will be delisted. (FinancialDaily)
Bonds: Cagamas Bhd plans to sell up to RM5b Islamic bonds. Cagamas Bhd yesterday rolled out plans to sell up to RM5b of Islamic bonds crafted to suit Middle Eastern investors, a segment that has shied away from offerings from this part of the world due to differences of opinion on Shariah compliance. (Source: Malaysian Reserve)
LBS Bina: To launch RM5b China project next year. Property developer LBS Bina Group Bhd will launch its 4th project, worth over RM5b, in Zhuhai, China, in the 2nd half of next year. The 60:40 joint venture between LBS and Jiuzhou Group, a Chinese GLC, has been delayed by 3 years because of the uncertain economic conditions. Apart from that, it plans to launch 3 housing projects in Malaysia valued at RM600m and is issuing RM135m sukuk to part-finance those projects. (Source: Malaysian Reserve, Business Times)
Markets: Bursa has 45 firms under PN17 status. There are now 45 companies listed on Bursa Malaysia that are classified under PN17 or financially-troubled companies. Finance Minister Datuk Donald Lim Siang Chai said the ministry and Bursa would gather the views of those in the market on improving the financial standards of problematic local companies. (Source: The Star)
Nestle: Investing RM20m to raise Kit Kat plant output. Nestle (M) Bhd will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan and this would increase the plant's capacity by 30%. (Source: The Star)
Utilities: Minister warns of water supply crisis. According to Energy, Green Technology and Water Minister Datuk Seri Peter Chin, the water restructuring issue in Selangor should not be muddled with the Langat 2 water treatment plant project as any delay in implementing the latter will result in a 13-14% water deficit by 2014. The estimates were based on the current level of water consumption in Selangor. (Source: The Star)
Notwithstanding the problems in the Selangor Water restructuring sector, Pengurusan Aset Air (PAAB) will seal its deal with the Perlis government early next month, according to a source. It is understood that a press conference for this purpose will be called on 2 Aug. The deal, which was supposed to be sealed by end-May, “ran into the usual red tape” issues but everything was confirmed now and the signing would take place in early August, the source said. He declined to divulge the value of the deal but said it would follow largely in the footsteps of the takeover of water assets in Johor which were acquired at one time book value and was concluded on a “willing-buyer-willing-seller” basis. (Starbiz)
BRDB to jointly develop 2 parcels of MPHB’s land
Bandar Raya Developments (BRDB) is teaming up with Multi-Purpose Holdings group to develop several parcels of land measuring a total of 670.7 acres belonging to the latter in Penang, Rawang and Gombak. BRDB had on the same day entered into three separate memoranda of understanding (MoUs) with MPHB to record their intention to collaborate with each other on the proposed development of the land in Penang (80 acres), Rawang (266.7 acres) and Gombak ((324 acres). (FinancialDaily)
Nestle investing RM20m to raise Kit Kat plant output
Nestle (M) will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan. Nestle Products SB business executive manager (confectionary division) Andrew Cooper said this would increase the plant’s capacity by 30%. (Starbiz)
Petra Energy gets new director
Integrated oil and gas brown field services provider Petra Energy has appointed three new directors – Abdul Rahim Hamid, Ahmad Azra Salled and Surya Hidayat Abdul Malik – effective yesterday. Abdul Rahim and Ahmad Azra were independent and non-executive directors while Petra Perdana executive director Surya Hidayat was a non-independent and non-executive director. (Starbiz)
MMosaics to be privatised at RM2.30 a share
Malaysian Mosaics announced yesterday that the company has received a privatisation proposal from its major shareholder, Gek Poh (Holdings) SB, at RM2.30 cash per share. The privatisation will be done via a selective capital repayment exercise whereby all minority shareholders of MMosaics (except Gek Poh and its subsidiary, Pembangunan Melati SB), will receive a cash payment of RM2.30 per share. The existing paid-up share capital of MMosaics will be reduced by cancelling all the ordinary shares issued and the company will be delisted. (FinancialDaily)
Bonds: Cagamas Bhd plans to sell up to RM5b Islamic bonds. Cagamas Bhd yesterday rolled out plans to sell up to RM5b of Islamic bonds crafted to suit Middle Eastern investors, a segment that has shied away from offerings from this part of the world due to differences of opinion on Shariah compliance. (Source: Malaysian Reserve)
LBS Bina: To launch RM5b China project next year. Property developer LBS Bina Group Bhd will launch its 4th project, worth over RM5b, in Zhuhai, China, in the 2nd half of next year. The 60:40 joint venture between LBS and Jiuzhou Group, a Chinese GLC, has been delayed by 3 years because of the uncertain economic conditions. Apart from that, it plans to launch 3 housing projects in Malaysia valued at RM600m and is issuing RM135m sukuk to part-finance those projects. (Source: Malaysian Reserve, Business Times)
Markets: Bursa has 45 firms under PN17 status. There are now 45 companies listed on Bursa Malaysia that are classified under PN17 or financially-troubled companies. Finance Minister Datuk Donald Lim Siang Chai said the ministry and Bursa would gather the views of those in the market on improving the financial standards of problematic local companies. (Source: The Star)
Nestle: Investing RM20m to raise Kit Kat plant output. Nestle (M) Bhd will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan and this would increase the plant's capacity by 30%. (Source: The Star)
Utilities: Minister warns of water supply crisis. According to Energy, Green Technology and Water Minister Datuk Seri Peter Chin, the water restructuring issue in Selangor should not be muddled with the Langat 2 water treatment plant project as any delay in implementing the latter will result in a 13-14% water deficit by 2014. The estimates were based on the current level of water consumption in Selangor. (Source: The Star)
20100714 1203 Global Market News.
July 14 (Bloomberg) -
Euro recovers after Greek auction; stocks gain
LONDON, July 13 (Reuters) - The euro recovered after Greece successfully returned to capital markets for the first time since late April, while global equities advanced after Alcoa delivered a strong start to the earnings season. "We were expecting a good result, and it's good for Greece and the euro, but Greece has a long way to travel, as its economic challenges are pretty severe," said Paul Robinson, FX strategist at Barclays Capital.
Euro recovers after Greek auction; stocks gain
LONDON, July 13 (Reuters) - The euro recovered after Greece successfully returned to capital markets for the first time since late April, while global equities advanced after Alcoa delivered a strong start to the earnings season. "We were expecting a good result, and it's good for Greece and the euro, but Greece has a long way to travel, as its economic challenges are pretty severe," said Paul Robinson, FX strategist at Barclays Capital.
20100714 1152 Soy Oil & Palm Oil Related News.
Soyoil futures rallied Tuesday, climbing on a combination of meal/oil spread unwinding and the bullish influence of soaring crude oil futures, analysts said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.45 cent, or 1.2%, higher at 38.81 cents per pound.(Source: CME)
Palm Prices To Remain Under Pressure As Output Rises -Analysts(Source: CME)
Palm oil prices will remain under pressure over the next few months despite a bullish crop report by the Malaysian Palm Oil Board as production is expected to recover, rising to a peak in the September-November period, analysts said Tuesday.
The MPOB Monday said end-June palm oil inventories fell 7.1% compared with end-May to 1.45 million metric tons, the lowest level since August last year, as exports rose 5.5% on month to 1.44 million tons.
"We believe the shortfall in palm production could be a reflection of the general shortage of foreign workers in Malaysia, which resulted in lower-than-expected yields. Output should recover seasonally in the next few months," Tan Ting Min, an analyst at Credit Suisse Malaysia, said in a note to clients.
Malaysia's labor-intensive palm oil sector faces a dearth of foreign workers after the government introduced stricter regulations to curb rising social and security problems and reduce dependence on foreign labor.
Also, most of the Indonesian workers, who comprise a large percentage of the plantation labour force, have opted to return home due to improved work prospects and higher wages.
CPO output in June rose only 2.5% to 1.42 million tons, as production in Sabah, the top palm oil producing state, fell 23% on month, data from MPOB showed.
Despite the weak growth in June production, a double-digit rise in output this month would probably mean inventory levels may reach higher levels at end-July, analysts and plantation company executives said.
Much of the palm crop development will also hinge on the developing La Nina condition, which brings increased rainfall to Southeast Asia, improving soil conditions for the rain-fed palm trees and boosting future yields.
"The La Nina impact on CPO is likely to be positive in the third quarter, as harvesting activities in some flood-prone palm oil estates in Southeast Asia may be affected by the heavier rainfall," CIMB Research said in a note.
Palm steady as soft oil, soybeans limit gains
JAKARTA, July 13 (Reuters) - Malaysian crude palm fell slightly by the end of morning trade as softer crude oil and soybean prices erased earlier gains.
"Prices consolidated on the absence of fresh bullish news. Lower crude oil also failed to enthuse players," a trader at a local brokerage firm said.
China shows no sign of deal on Argentine soyoil
BEIJING, July 13 (Reuters) - Chinese officials showed no hint of striking a deal on Argentine soyoil imports on Tuesday, despite President Cristina Fernandez saying she expected to resolve the trade dispute within days.
Fenandez, who is visiting Beijing and will travel to Shanghai later in the week, said on Monday a deal would come within two or three days.
Rains to boost India's soybean harvest, meal export
NEW DELHI, July 13 (Reuters) - Revival in India's monsoon rains will help soybean output rise 9.7 percent this year, boosting oilmeal exports, industry officials said on Tuesday.
Farmers in India, the world's biggest edible oil importer and Asia's leading oilmeal exporter, plant soybean in the rainy months of July and August, with harvests starting from October.
Palm Prices To Remain Under Pressure As Output Rises -Analysts(Source: CME)
Palm oil prices will remain under pressure over the next few months despite a bullish crop report by the Malaysian Palm Oil Board as production is expected to recover, rising to a peak in the September-November period, analysts said Tuesday.
The MPOB Monday said end-June palm oil inventories fell 7.1% compared with end-May to 1.45 million metric tons, the lowest level since August last year, as exports rose 5.5% on month to 1.44 million tons.
"We believe the shortfall in palm production could be a reflection of the general shortage of foreign workers in Malaysia, which resulted in lower-than-expected yields. Output should recover seasonally in the next few months," Tan Ting Min, an analyst at Credit Suisse Malaysia, said in a note to clients.
Malaysia's labor-intensive palm oil sector faces a dearth of foreign workers after the government introduced stricter regulations to curb rising social and security problems and reduce dependence on foreign labor.
Also, most of the Indonesian workers, who comprise a large percentage of the plantation labour force, have opted to return home due to improved work prospects and higher wages.
CPO output in June rose only 2.5% to 1.42 million tons, as production in Sabah, the top palm oil producing state, fell 23% on month, data from MPOB showed.
Despite the weak growth in June production, a double-digit rise in output this month would probably mean inventory levels may reach higher levels at end-July, analysts and plantation company executives said.
Much of the palm crop development will also hinge on the developing La Nina condition, which brings increased rainfall to Southeast Asia, improving soil conditions for the rain-fed palm trees and boosting future yields.
"The La Nina impact on CPO is likely to be positive in the third quarter, as harvesting activities in some flood-prone palm oil estates in Southeast Asia may be affected by the heavier rainfall," CIMB Research said in a note.
Palm steady as soft oil, soybeans limit gains
JAKARTA, July 13 (Reuters) - Malaysian crude palm fell slightly by the end of morning trade as softer crude oil and soybean prices erased earlier gains.
"Prices consolidated on the absence of fresh bullish news. Lower crude oil also failed to enthuse players," a trader at a local brokerage firm said.
China shows no sign of deal on Argentine soyoil
BEIJING, July 13 (Reuters) - Chinese officials showed no hint of striking a deal on Argentine soyoil imports on Tuesday, despite President Cristina Fernandez saying she expected to resolve the trade dispute within days.
Fenandez, who is visiting Beijing and will travel to Shanghai later in the week, said on Monday a deal would come within two or three days.
Rains to boost India's soybean harvest, meal export
NEW DELHI, July 13 (Reuters) - Revival in India's monsoon rains will help soybean output rise 9.7 percent this year, boosting oilmeal exports, industry officials said on Tuesday.
Farmers in India, the world's biggest edible oil importer and Asia's leading oilmeal exporter, plant soybean in the rainy months of July and August, with harvests starting from October.
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