Malaysia: MIER ups growth forecast to 6.5%
The Malaysian Institute of Economic Research (Mier) has revised upwards its 2010 GDP growth forecast to 6.5% from 5.2% previously, given a stronger-than-expected 1Q GDP growth along with strengthening domestic demand and stabilizing conditions. Executive director Dr Zakariah Abdul Rashid, however, said the growth was expected to taper off in the second half of this year due to further policy-tightening measures and disappearing low base effects. (StarBiz)
Japan: BOJ predicts growth to slow in 2011, keeps 0.1% rate
The Bank of Japan kept interest rates unchanged and predicted growth in the world’s second- largest economy will slow next year as fiscal stimulus evaporates worldwide and overseas demand loses steam. Policy makers raised their growth forecast for the year ending March 2011 to 2.6% from 1.8% estimated in April, while cutting next year’s to 1.9% from 2%, the central bank said. The board held the benchmark overnight lending rate at 0.1%. (Bloomberg)
China: Economic growth eases to 10.3% on credit curbs
China’s economic expansion eased to 10.3% in the 2Q and industrial production cooled more than forecast in June, signaling a deeper second- half slowdown that may add to risks for the global economy. The gain in GDP was less than an 11.9% increase in January-March from a year earlier. Inflation cooled to 2.9% in June, the statistics bureau reported. Industrial output rose 13.7%, less than all but one of 27 forecasts in a Bloomberg News survey. (Bloomberg)
Chile: Raises rate to 1.5% as growth threatens prices
Chile’s central bank raised its benchmark interest rate for the second straight month after the fastest economic growth in almost five years pushes inflation back up toward policy makers’ target. The five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a half point to 1.5% from 1%, matching the forecasts of all but one of the 16 economists surveyed by Bloomberg. (Bloomberg)
US: Industrial production in US increased 0.1% in June
Industrial production in the US unexpectedly rose in June as higher temperatures across the nation led to increased utility use. Factory output, which makes up 75% of the total, declined the most in a year. Production at factories, mines and utilities increased 0.1% after a 1.3% gain in May, figures from the Federal Reserve showed. Economists had forecast a 0.1% drop in June, according to the median estimate in a Bloomberg News survey. Utility output rose 2.7%, while production at manufacturers declined 0.4%. Producer prices slid 0.5% after a 0.3% decline the month before, the Labor Department said. (Bloomberg)
Friday, July 16, 2010
20100716 0943 Malaysia Corporate News.
Government cuts fuel, sugar subsidies
Prices of petrol for RON95, RON97, diesel, liquefied petroleum gas (LPG) and sugar will increase from today as the Government seeks to reduce subsidies for these products and cut government expenditure by about RM750m. Subsidies for RON95 petrol and diesel will be cut by 5 sen per litre, LPG by 10 sen per kilogram and sugar by 25 sen per kg. The government would no longer subsidise the higher grade RON97 petrol, which would be subject to a managed float. At current price, the RON97 petrol would cost an additional 5 sen. (Financial Daily)
Changes to listing rules proposed
Proposed amendments to Bursa Malaysia’s listing requirements and the introduction of the Corporate Disclosure Guide (CD Guide) are set to prod listed companies into revealing more details about key developments, including changes of directors, chief executive officers (CEOs), chief financial officers (CFOs), external auditors and independent advisers. The revamp also covers disclosure rules for quarterly and annual reports, pledging of shares by controlling shareholders, termination of corporate proposals and voting results of shareholder meetings. (StarBiz)
PAAB sees Selangor water asset takeover by year-end
Pengurusan Aset Air (PAAB) is hoping to complete its planned acquisition of water assets in Selangor by the end of the year, said its CEO and director Datuk Ahmad Faizal Abdul Rahman. The cost of acquiring the water assets in Selangor would be well over RM10bn in total, and PAAB is sticking to its plans to acquire the assets, with operational and maintenance (O&M) rights, contrary to what the Selangor wants. Ahmad Faizal said PAAB too hoped to complete the takeover of the water assets in Perlis, Kelantan, Perak and Pahang by year-end. (Financial Daily)
Time Eng sale next week?
UEM Group’s proposed sale of its 45% stake in Time Engineering is expected to be announced as early as Monday, which is strong evidence of the acceleration of the conglomerate’s asset disposal programme, sources said. The identity of the purchaser could not be ascertained. The disposal of Time Engineering shares was previously reported to be at around 50 sen apiece. (Financial Daily)
Trading in Titan suspended ahead of corporate announcement
Titan Chemical Corp requested that trading in its shares be suspended today pending an announcement of a corporate proposal involving the major shareholders of the company. Market talk is that a general offer (GO) for the company is in the works, which could come after two of the company’s largest shareholders sell their respective stakes in Titan. Although market talk has been rife of Titan being privatized, pricing and other salient features have yet to surface. One name that has cropped up as a buyer is China Petroleum and Chemical Corp (known as Sinopec Corp) but this remained unsubstantiated. News reports had speculated that Titan’s largest shareholders, the Chao family and PNB, would sell out. (Financial Daily)
Nikko to be delisted
Nikko Electronics will be delisted and removed from the official list of Bursa Malaysia on 27 July. The delisting is in accordance to the decision of Bursa announced by the company on 23 Oct last year. The Securities Commission via its letter dated 24 June 2010 rejected Nikko’s proposed restructuring scheme and the company decided not to appeal against the decision. (BT)
Prices of petrol for RON95, RON97, diesel, liquefied petroleum gas (LPG) and sugar will increase from today as the Government seeks to reduce subsidies for these products and cut government expenditure by about RM750m. Subsidies for RON95 petrol and diesel will be cut by 5 sen per litre, LPG by 10 sen per kilogram and sugar by 25 sen per kg. The government would no longer subsidise the higher grade RON97 petrol, which would be subject to a managed float. At current price, the RON97 petrol would cost an additional 5 sen. (Financial Daily)
Changes to listing rules proposed
Proposed amendments to Bursa Malaysia’s listing requirements and the introduction of the Corporate Disclosure Guide (CD Guide) are set to prod listed companies into revealing more details about key developments, including changes of directors, chief executive officers (CEOs), chief financial officers (CFOs), external auditors and independent advisers. The revamp also covers disclosure rules for quarterly and annual reports, pledging of shares by controlling shareholders, termination of corporate proposals and voting results of shareholder meetings. (StarBiz)
PAAB sees Selangor water asset takeover by year-end
Pengurusan Aset Air (PAAB) is hoping to complete its planned acquisition of water assets in Selangor by the end of the year, said its CEO and director Datuk Ahmad Faizal Abdul Rahman. The cost of acquiring the water assets in Selangor would be well over RM10bn in total, and PAAB is sticking to its plans to acquire the assets, with operational and maintenance (O&M) rights, contrary to what the Selangor wants. Ahmad Faizal said PAAB too hoped to complete the takeover of the water assets in Perlis, Kelantan, Perak and Pahang by year-end. (Financial Daily)
Time Eng sale next week?
UEM Group’s proposed sale of its 45% stake in Time Engineering is expected to be announced as early as Monday, which is strong evidence of the acceleration of the conglomerate’s asset disposal programme, sources said. The identity of the purchaser could not be ascertained. The disposal of Time Engineering shares was previously reported to be at around 50 sen apiece. (Financial Daily)
Trading in Titan suspended ahead of corporate announcement
Titan Chemical Corp requested that trading in its shares be suspended today pending an announcement of a corporate proposal involving the major shareholders of the company. Market talk is that a general offer (GO) for the company is in the works, which could come after two of the company’s largest shareholders sell their respective stakes in Titan. Although market talk has been rife of Titan being privatized, pricing and other salient features have yet to surface. One name that has cropped up as a buyer is China Petroleum and Chemical Corp (known as Sinopec Corp) but this remained unsubstantiated. News reports had speculated that Titan’s largest shareholders, the Chao family and PNB, would sell out. (Financial Daily)
Nikko to be delisted
Nikko Electronics will be delisted and removed from the official list of Bursa Malaysia on 27 July. The delisting is in accordance to the decision of Bursa announced by the company on 23 Oct last year. The Securities Commission via its letter dated 24 June 2010 rejected Nikko’s proposed restructuring scheme and the company decided not to appeal against the decision. (BT)
20100716 0932 Global Market News.
Dollar weakens on U.S. data, Asia stocks dip
HONG KONG, July 16 (Reuters) - The dollar fell and Asian stocks dipped as the U.S. economy showed further signs of slowing, while the euro appeared poised for further gains after breaching key resistance levels.
"The micro base for the U.S., including things such as the Intel results earlier this week, is pretty good, but the macro base really isn't, and this is raising a lot of concern about the U.S. economy," said Yutaka Miura, senior technical analyst at Mizuho Securities.
World stocks end flat on BP, Goldman; dollar offNEW YORK, July 15 (Reuters) - World stocks staged a late-day surge to end flat on Thursday following positive developments at BP Plc and Goldman Sachs , while the dollar fell broadly on downbeat U.S. manufacturing and inflation data.
"In essence, you'll have 'closure' on two issues," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "An announcement along the lines of BP's announcement, and the Goldman Sachs issue closed, if that's what it is, that would help the tone of the market quite handsomely."
Jul 16 (Reuters) - Google profit misses as expenses surge.
July 15 (Bloomberg) -- JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, higher than analysts expected as provisions for soured mortgages and credit-card loans declined. Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg.
World stocks slip, yen rises after Fed
LONDON, July 15 (Reuters) - World stocks slipped from a three-week peak while the low-yielding yen rose after the Federal Reserve suggested additional measures may be needed to combat a weakening economy.
"On one hand, we have very strong company results. On the other hand, we have lingering doubts about the pace of the economic recovery," said Luc Van Hecka, chief economist at KBC Securities.
HONG KONG, July 16 (Reuters) - The dollar fell and Asian stocks dipped as the U.S. economy showed further signs of slowing, while the euro appeared poised for further gains after breaching key resistance levels.
"The micro base for the U.S., including things such as the Intel results earlier this week, is pretty good, but the macro base really isn't, and this is raising a lot of concern about the U.S. economy," said Yutaka Miura, senior technical analyst at Mizuho Securities.
World stocks end flat on BP, Goldman; dollar offNEW YORK, July 15 (Reuters) - World stocks staged a late-day surge to end flat on Thursday following positive developments at BP Plc and Goldman Sachs , while the dollar fell broadly on downbeat U.S. manufacturing and inflation data.
"In essence, you'll have 'closure' on two issues," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "An announcement along the lines of BP's announcement, and the Goldman Sachs issue closed, if that's what it is, that would help the tone of the market quite handsomely."
Jul 16 (Reuters) - Google profit misses as expenses surge.
July 15 (Bloomberg) -- JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, higher than analysts expected as provisions for soured mortgages and credit-card loans declined. Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg.
World stocks slip, yen rises after Fed
LONDON, July 15 (Reuters) - World stocks slipped from a three-week peak while the low-yielding yen rose after the Federal Reserve suggested additional measures may be needed to combat a weakening economy.
"On one hand, we have very strong company results. On the other hand, we have lingering doubts about the pace of the economic recovery," said Luc Van Hecka, chief economist at KBC Securities.
20100716 0930 Soy Oil & Palm Oil Related News.
Soyoil futures climbed in step with the rest of the complex, underpinned by the rise in crushing margins and solid export demand. However, soyoil continued to lose ground to soymeal on spreads. December soyoil settled 0.47 cent, or 1.2%, higher at 39.37 cents per pound.
Pakistan Ups Palm Oil Purchases As Ramadan Looms.(Source:CME)
Pakistan has bought up to 225,000 metric tons of palm oil in July as demand rises in preparation for Ramadan, the Islamic month of fasting, an industry official said Thursday.
"We may see a record shipment of palm oil this month for the Ramadan period, between 200,000 and 225,000 tons. In fact the imports are slightly more than the requirement" for the month, Rasheed Janmohammad, vice-chairman of the Pakistan Edible Oil Refiners Association said.
Pakistan is the largest buyer of palm oil in the world after India and China, purchasing an average of 80,000-125,000 tons a month.
According to cargo surveyor SGS (Malaysia) Bhd., Pakistan imported 140,696 tons for the first 15 days of July.
Ramadan, which this year runs from approximately Aug. 11 to Sept. 9, is generally a period of heavier demand.
"We expect August to be a heavy buying month as well, with palm oil imports likely to reach 150,000 tons," Janmohammad told Dow Jones Newswires by telephone from Karachi. Only 20%-30% of the required amount for August has been purchased so far, he said.
Pakistani imports of crude and refined palm products for calendar year 2010 will reach 1.85 million tons, up 3% from 1.79 million tons last year, Janmohammad said.
Purchases of refined, bleached and deodorized (RBD) palm olein will continue to dominate Pakistan's total palm oil imports in 2010, he said.
Pakistan relies heavily on imports to supply its edible oil consumption of 3 million tons a year, as it produces only some 800,000 tons of oil a year from sunflowers, rapeseeds and cottonseeds.
Purchases of palm oil should decline in the September-October period, when cottonseed oil begins arriving, PEORA's Janmohammad said.
Prices of crude palm oil, or CPO, are expected to decline due to a seasonal increase in palm oil supply during the July-September quarter, but rising festive demand from the Middle East as well as the Indian subcontinent may lead to a drawdown in palm inventories, boosting prices.
Traders said Pakistan's CPO imports may rise after the government said in its federal budget last month that it would reduce import duties on the commodity to PKR8,000/ton ($94) from PKR9,000/ton, beginning July 1.
Based on SGS data, CPO imports to Pakistan increased nearly three-fold in the first half of July, to 25,200 tons, compared with only 9,000 tons for the same period in June.
Janmohammad said the country's CPO imports may "improve but not exorbitantly, as it's still difficult for refiners to make good margins."
That's because the narrow price differential between CPO and RBD palm oil makes it cheaper to import the latter, rather than shipping in CPO and then refining it locally.
Pakistan sources around 95% of its palm oil from Malaysia and the remainder from Indonesia. But in the last few years, Pakistan has bought more CPO from Indonesia due to a Malaysian quota on CPO exports designed to encourage sales of higher-value refined palm products.
Palm hit above 3-week high on strong demand, soy
JAKARTA, July 15 (Reuters) - Malaysian crude palm oil rose to a more than three-week high at midday , supported by gains in soybean markets and strong demand ahead of the start of Ramadan in August.
"We are moving in to Ramadan next month which will push up demand from Muslim countries," a trader at a foreign-brokerage firm said. "Soybean also gained which also supports the market."
India's June vegoil imports fall sixth straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell an annual 6 percent in June, dropping for the six straight month but not as sharply as market expectations as farmers held back oilseed sales anticipating higher prices later.
Traders in the world's biggest importer of edible oils had expected an 18 percent fall in the overseas purchases of vegetable oils in June.
Food firms slow on green palm oil pledge-processor
AMSTERDAM, July 14 (Reuters) - More food makers should commit to only using palm oil that is certified as sustainable to help raise environmental standards in the industry, the head of palm oil processor Loders Croklaan Europe said on Wednesday.
Some food groups such as Unilever and Nestle have made pledges to gradually switch to sourcing all palm oil from sustainably certified sources, but many other manufacturers and retailers are yet to follow.
India to step up Argentine soyoil imports
BUENOS AIRES, July 14 (Reuters) - India will continue to increase its purchases of Argentine soyoil this year, helping the South American country plug the gap left by China's boycott, the Indian ambassador to Buenos Aires said on Wednesday. Argentina is the world's biggest supplier of soybean oil, but exporters have been forced to look for new markets after top buyer China halted imports in late March in retaliation for Argentine import curbs on industrial goods.
Pakistan Ups Palm Oil Purchases As Ramadan Looms.(Source:CME)
Pakistan has bought up to 225,000 metric tons of palm oil in July as demand rises in preparation for Ramadan, the Islamic month of fasting, an industry official said Thursday.
"We may see a record shipment of palm oil this month for the Ramadan period, between 200,000 and 225,000 tons. In fact the imports are slightly more than the requirement" for the month, Rasheed Janmohammad, vice-chairman of the Pakistan Edible Oil Refiners Association said.
Pakistan is the largest buyer of palm oil in the world after India and China, purchasing an average of 80,000-125,000 tons a month.
According to cargo surveyor SGS (Malaysia) Bhd., Pakistan imported 140,696 tons for the first 15 days of July.
Ramadan, which this year runs from approximately Aug. 11 to Sept. 9, is generally a period of heavier demand.
"We expect August to be a heavy buying month as well, with palm oil imports likely to reach 150,000 tons," Janmohammad told Dow Jones Newswires by telephone from Karachi. Only 20%-30% of the required amount for August has been purchased so far, he said.
Pakistani imports of crude and refined palm products for calendar year 2010 will reach 1.85 million tons, up 3% from 1.79 million tons last year, Janmohammad said.
Purchases of refined, bleached and deodorized (RBD) palm olein will continue to dominate Pakistan's total palm oil imports in 2010, he said.
Pakistan relies heavily on imports to supply its edible oil consumption of 3 million tons a year, as it produces only some 800,000 tons of oil a year from sunflowers, rapeseeds and cottonseeds.
Purchases of palm oil should decline in the September-October period, when cottonseed oil begins arriving, PEORA's Janmohammad said.
Prices of crude palm oil, or CPO, are expected to decline due to a seasonal increase in palm oil supply during the July-September quarter, but rising festive demand from the Middle East as well as the Indian subcontinent may lead to a drawdown in palm inventories, boosting prices.
Traders said Pakistan's CPO imports may rise after the government said in its federal budget last month that it would reduce import duties on the commodity to PKR8,000/ton ($94) from PKR9,000/ton, beginning July 1.
Based on SGS data, CPO imports to Pakistan increased nearly three-fold in the first half of July, to 25,200 tons, compared with only 9,000 tons for the same period in June.
Janmohammad said the country's CPO imports may "improve but not exorbitantly, as it's still difficult for refiners to make good margins."
That's because the narrow price differential between CPO and RBD palm oil makes it cheaper to import the latter, rather than shipping in CPO and then refining it locally.
Pakistan sources around 95% of its palm oil from Malaysia and the remainder from Indonesia. But in the last few years, Pakistan has bought more CPO from Indonesia due to a Malaysian quota on CPO exports designed to encourage sales of higher-value refined palm products.
Palm hit above 3-week high on strong demand, soy
JAKARTA, July 15 (Reuters) - Malaysian crude palm oil rose to a more than three-week high at midday , supported by gains in soybean markets and strong demand ahead of the start of Ramadan in August.
"We are moving in to Ramadan next month which will push up demand from Muslim countries," a trader at a foreign-brokerage firm said. "Soybean also gained which also supports the market."
India's June vegoil imports fall sixth straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell an annual 6 percent in June, dropping for the six straight month but not as sharply as market expectations as farmers held back oilseed sales anticipating higher prices later.
Traders in the world's biggest importer of edible oils had expected an 18 percent fall in the overseas purchases of vegetable oils in June.
Food firms slow on green palm oil pledge-processor
AMSTERDAM, July 14 (Reuters) - More food makers should commit to only using palm oil that is certified as sustainable to help raise environmental standards in the industry, the head of palm oil processor Loders Croklaan Europe said on Wednesday.
Some food groups such as Unilever and Nestle have made pledges to gradually switch to sourcing all palm oil from sustainably certified sources, but many other manufacturers and retailers are yet to follow.
India to step up Argentine soyoil imports
BUENOS AIRES, July 14 (Reuters) - India will continue to increase its purchases of Argentine soyoil this year, helping the South American country plug the gap left by China's boycott, the Indian ambassador to Buenos Aires said on Wednesday. Argentina is the world's biggest supplier of soybean oil, but exporters have been forced to look for new markets after top buyer China halted imports in late March in retaliation for Argentine import curbs on industrial goods.
Thursday, July 15, 2010
20100715 1831 FCPO EOD Daily Chart Study.
Bollinger band reading : turned to side way range bound little upside biased.
MACD Histrogram : getting higher, buyer increase exposure.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO gained for the 6th consecutive day in ultra high volume changed hand after supporting positive export figure released today. Daily chart shows that seller lost control as buyer returned aggressively break above crucial 2400 resistant level closed near upper Bollinger band level. Reading turned into suggesting a side way range bound little upside biased market.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100715 1756 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer defending.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
FKLI surrender yesterday gains and retreat lower in lesser volume traded as market sentiment turned negative following a lower closed on regional market and worry of US and China economy condition. Daily chart shows market tested lower but still managed to closed right at support level with the reading turned into a side way range bound market little upside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100715 1300 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : getting lower, buyer reduce position as seller present.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Mostly range bound FKLI ended the first session lower with maintaining volume transaction as sentiment turned little negative due to the news of US economy recovery pace plus forecast of a slower 2nd half China growth. Break and stayed below middle Bollinger band hourly chart indicate seller trying to test the market with the outlook having a range bound correction upside biased market reading.
20100715 1248 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer lock in profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Fear of lower stock level plus improved export data spurted FCPO price higher in better volume traded.
Hourly chart shows that price surged higher breaking 2400 resistant level before profit taking activities take place to pressed price lower below 2400 with the reading suggesting an upside biased market with pullback correction taking place.
20100715 1055 Global Economic News.
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)
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)
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.
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