Economics: Malaysia to benefit from QE2, says Templeton. Emerging market such as Malaysia are set to benefit from monetary inflows as the US looks to investing in developing countries as a result of the second round of quantitative easing (QE2), said a global asset manager. Franklin Templeton Investments international chief investment officer Stephen Dover said a big portion of the money from QE2 would go into emerging markets, but these markets are at risk of overheating if not managed well. (Source: The Edge Financial Daily)
U.S: Fed says banks eased lending standards over 3 months . Banks were more willing to make consumer installment loans and eased standards on credit-card loans, the central bank said in its quarterly survey of senior loan officers through the middle of October. At the same time, demand for mortgages remained weak, while demand for business lending fell, after having been unchanged in the previous survey. (Source: Bloomberg)
Ireland: EU's Rehn endorses budget plan amid bond 'buyers strike' . European Union Economic and Monetary Affairs Commissioner Olli Rehn said he endorses the Irish government's plan to cut spending and raise taxes by as much as EUR 6b (USD 8.4b) in 2011. The Irish government hasn?t requested "financial backstops" and needs to be given space to work out a four-year budget program, Rehn said at a joint press conference in Dublin with Irish Finance Minister Brian Lenihan. Rehn was speaking at the start of a two-day trip to Ireland to show support for the government after the nation's bonds tumbled for a 10th consecutive day and the extra yield investors demand to hold the debt reached a record. (Source: Bloomberg)
Portugal: China willing to support the country's efforts to come through the economic crisis that has prompted its borrowing costs to spiral this year. "We are available to support, through concrete measures, Portuguese efforts to face the impacts caused by the international financial crisis, and deepen and broaden our economic and commercial cooperation," Chinese President Hu Jintao said in Lisbon. (Source: Bloomberg)
Australia: Job advertisements rose in October for a sixth straight month , reinforcing evidence the nation's economic expansion will accelerate next year. Jobs advertised in newspapers and on the Internet climbed 0.6% MoM from September, when they rose a revised 1.1% MoM, according to an Australia & New Zealand Banking Group Ltd. Report released in Melbourne. (Source: Bloomberg)
Australia: Strengthening currency will crimp tax revenue , especially levies on resources companies, and influence the midyear budget forecast , Treasurer Wayne Swan said. The rise of Australian dollar, the best-performing major currency against the greenback since July, is cutting into tax receipts as the value of export earnings declines, Swan said in a statement. (Source: Bloomberg)
EU: German industrial production unexpectedly fell in September
Industrial production in Germany unexpectedly declined in September, adding to signs Europe’s largest economy is losing momentum. Output declined 0.8% from August, when it rose 1.5%. Economists had forecast a 0.4% gain. Y-o-y, production increased 7.9% when adjusted for the number of work days. Manufacturing output fell 0.9%. Production of investment goods was unchanged in the month and consumer goods production fell 0.6%. Energy production increased 1.2% and construction output rose 0.4%. (Bloomberg)
EU: Swiss jobless rate declines
The Swiss jobless rate fell to the lowest in more than 1.5 years in October as companies boosted their workforce to meet global export demand. The jobless rate dropped to 3.6% from 3.7% in September when adjusted for seasonal swings, the lowest since May 2009. The unadjusted jobless rate held at 3.5%. (Bloomberg)
UK: First-time homebuyers return on price drop
The number of Britons planning to buy a home for the first time has increased as the prospect of falling prices bolsters demand. The proportion of people who intend to buy a home in the coming 12 months and who will be making their first purchase rose to 26% in October, compared to 22% in July. The number of first-time buyers expecting values to drop in the next year surged to 32% from 20% in July. (Bloomberg)
US: Household debt shrank 0.9% in third quarter
US households cut their debt last quarter, borrowing less against homes and closing credit card accounts. Consumer indebtedness totaled USD11.6trn at the end of September, down USD110bn, or 0.9% q-o-q. Households have slashed about USD1trn from outstanding consumer debts since the peak in the third quarter of 2008. The report also showed that consumers are succeeding in improving their household finances as delinquency rates continued to decline, with 11.1% of outstanding debt in “some stage of delinquency,” down from 11.4% q-o-q and 11.6% y-o-y. (Bloomberg)
Tuesday, November 9, 2010
20101109 1141 Malaysia Corporate News,
AirAsia: Introduces Phuket-Bali Route. Budget airline AirAsia introduced the Phuket-Bali route four times a week, dubbing it as "from paradise to paradise". The new route aims to make travel more convenient for everyone and to stimulate tourism revenue and the local economy in Phuket. (Source: Bernama)
TA: Launches first wholesale funds. TA Investment Management Bhd has launched its first wholesale funds- TA Australia Income Fund 1 and/or II - which seek to provide investors with a regular income distribution in Australian dollar over an investment horizon of three and/or five years as well as to receive capital repayment in Australian dollar upon maturity. The fund will be invested in Australian dollar-denominated fixed rate note issued by foreign financial institution. (Source: The Star)
Masterskill: Plunges on PTPTN woes. Masterskill Education Group Bhd's shares have fallen steadily since late July. The selling pressure accelerated sharply over the past week, possibly due to concerns that National Higher Education Loan Fund (PTPTN) could be facing a deficit of RM46b as highlighted in the 2009 Auditor General's (AG) Report. Masterskill is said to rely on PTPTN to provide financing for 95% of its students. There are also fears that Masterskill's stock could see overhang pressures once the six month moratorium on selling by its pre-IPO investors expire at Nov 18. (Source: The Edge Financial Daily)
Accounting: Full IFRS compliance by 2012. Malaysia is on track to achieve full compliance to the International Financial Reporting Standards (IFRS) by 1 January 2012, Prime Minister Datuk Seri Najib Razak said. (Source: Business Times)
AZRB to exit EPIC in RM115m deal
Construction firm Ahmad Zaki Resources (AZRB) is proposing to sell off its 35.97m shares, or 21.26% stake, in Eastern Pacific Industrial Corp (EPIC) to Lembaga Tabung Amanah Warisan Negeri Terengganu (LTAW) for RM111.5m, or about RM3.10 a share. In announcement to Bursa Malaysia yesterday, AZRB said that the offer by LTAW “provides a timely opportunity for AZRB to realize and unlock the value of its investment in EPIC”. EPIC ended trading at RM2.09, gaining two sen yesterday. Meanwhile, the offer price is at a 48% premium to EPIC’s close. (Financial Daily)
Firefly plans to operates 30 B737-800s in five years
Firefly SB, the budget arm national of national carrier Malaysia Airlines (MAS), plans to add 30 units of B737- 800 to its fleet between 2011 and 2015. This is to support its aggressive route network expansion plans. Managing director Datuk Eddy Leong said Firefly expects to have six aircraft in service by end if 2011. Seven more airplanes will be added in 2012 and 2013, respectively and five in 2014 and another 5 in 2015. He said in the first year, all the jet airplanes operated by the airline will be leased via open market with plans to acquire new aircraft at the later stage. (Malaysian Reserve)
UEM Land: No plan to raise bid for Sunrise
UEM Land offered RM2.80 per share in an all-share deal but Sunrise shares rose 28% to close at RM3.22 yesterday. UEM Land Holdings has no plans to raise its bid for Sunrise Bhd after the latter's share price jumped above the offer price yesterday. Although major shareholders with a 40.34% stake have agreed to the offer, UEM Land still needs another 9.7% for the deal to happen. "We believe the current market price of Sunrise is only reflecting the proposed dividend announced, the proposed offer structure and the pricing of our offer to acquire Sunrise at RM2.80 per share," UEM Land said in response to Business Times' questions. Sunrise shareholders are offered 1.33 UEM Land shares for every share they hold, priced at RM2.10 each. "As such, any increase in UEM Land’s share price, will result in a proportionate increase in Sunrise’s share price as to reflect the proposed structure and pricing," it added. Shares of UEM Land rose 10.2% to RM2.49 yesterday. (BT)
Oil palm planters seek tax waiver
Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne Oil palm planters in Sarawak are appealing to the Government for a waiver of the windfall tax on crude palm oil (CPO). Oil palm planters in Peninsular Malaysia had been paying windfall tax when CPO prices went beyond RM2,500 per tonne in the cash market. Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne. Yesterday, CPO futures on the Bursa Malaysia derivatives market closed RM82 higher at RM3,273 per tonne. In a statement yesterday, Sarawak Oil Palm Plantation Owners Association (Soppoa) chairman Datuk Abdul Hamed Sepawi said it is unfair to levy a windfall tax on CPO, a commodity which is subjected to many factors in the international market beyond planters' control. (BT)
Toptrans to take over listing status of AMolek
The Ayer Molek Rubber Co (AMolek) listing status will be taken over by vendors of Toptrans Engineering SB in a back-door listing valued at RM7.5m. According to the restructuring proposal, a newco will take over AMolek’s 1.8m share equity for RM7.5m to be satisfied with a cash payment of RM4.17 per share, or the issuance of up to 196,600 newco shares at a price to be determined later. AMolek shareholders will also be given priority to subscribe to the newco shares to be offered by the vendors under a proposed offer for sale exercise. (Malaysian Reserve) China: Trade surplus may jump for October China may report its second-largest monthly trade surplus of the year tomorrow, indicating little lasting shift so far in addressing the imbalances in global spending and capital flows set to dominate a summit of the Group of 20. The USD25bn median forecast for October’s surplus compares with a USD16.9bn surplus in September. China’s export growth is estimated to cool to 23% in October y-o-y, compared with a 25.1% gain in September. (Bloomberg)
TA: Launches first wholesale funds. TA Investment Management Bhd has launched its first wholesale funds- TA Australia Income Fund 1 and/or II - which seek to provide investors with a regular income distribution in Australian dollar over an investment horizon of three and/or five years as well as to receive capital repayment in Australian dollar upon maturity. The fund will be invested in Australian dollar-denominated fixed rate note issued by foreign financial institution. (Source: The Star)
Masterskill: Plunges on PTPTN woes. Masterskill Education Group Bhd's shares have fallen steadily since late July. The selling pressure accelerated sharply over the past week, possibly due to concerns that National Higher Education Loan Fund (PTPTN) could be facing a deficit of RM46b as highlighted in the 2009 Auditor General's (AG) Report. Masterskill is said to rely on PTPTN to provide financing for 95% of its students. There are also fears that Masterskill's stock could see overhang pressures once the six month moratorium on selling by its pre-IPO investors expire at Nov 18. (Source: The Edge Financial Daily)
Accounting: Full IFRS compliance by 2012. Malaysia is on track to achieve full compliance to the International Financial Reporting Standards (IFRS) by 1 January 2012, Prime Minister Datuk Seri Najib Razak said. (Source: Business Times)
AZRB to exit EPIC in RM115m deal
Construction firm Ahmad Zaki Resources (AZRB) is proposing to sell off its 35.97m shares, or 21.26% stake, in Eastern Pacific Industrial Corp (EPIC) to Lembaga Tabung Amanah Warisan Negeri Terengganu (LTAW) for RM111.5m, or about RM3.10 a share. In announcement to Bursa Malaysia yesterday, AZRB said that the offer by LTAW “provides a timely opportunity for AZRB to realize and unlock the value of its investment in EPIC”. EPIC ended trading at RM2.09, gaining two sen yesterday. Meanwhile, the offer price is at a 48% premium to EPIC’s close. (Financial Daily)
Firefly plans to operates 30 B737-800s in five years
Firefly SB, the budget arm national of national carrier Malaysia Airlines (MAS), plans to add 30 units of B737- 800 to its fleet between 2011 and 2015. This is to support its aggressive route network expansion plans. Managing director Datuk Eddy Leong said Firefly expects to have six aircraft in service by end if 2011. Seven more airplanes will be added in 2012 and 2013, respectively and five in 2014 and another 5 in 2015. He said in the first year, all the jet airplanes operated by the airline will be leased via open market with plans to acquire new aircraft at the later stage. (Malaysian Reserve)
UEM Land: No plan to raise bid for Sunrise
UEM Land offered RM2.80 per share in an all-share deal but Sunrise shares rose 28% to close at RM3.22 yesterday. UEM Land Holdings has no plans to raise its bid for Sunrise Bhd after the latter's share price jumped above the offer price yesterday. Although major shareholders with a 40.34% stake have agreed to the offer, UEM Land still needs another 9.7% for the deal to happen. "We believe the current market price of Sunrise is only reflecting the proposed dividend announced, the proposed offer structure and the pricing of our offer to acquire Sunrise at RM2.80 per share," UEM Land said in response to Business Times' questions. Sunrise shareholders are offered 1.33 UEM Land shares for every share they hold, priced at RM2.10 each. "As such, any increase in UEM Land’s share price, will result in a proportionate increase in Sunrise’s share price as to reflect the proposed structure and pricing," it added. Shares of UEM Land rose 10.2% to RM2.49 yesterday. (BT)
Oil palm planters seek tax waiver
Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne Oil palm planters in Sarawak are appealing to the Government for a waiver of the windfall tax on crude palm oil (CPO). Oil palm planters in Peninsular Malaysia had been paying windfall tax when CPO prices went beyond RM2,500 per tonne in the cash market. Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne. Yesterday, CPO futures on the Bursa Malaysia derivatives market closed RM82 higher at RM3,273 per tonne. In a statement yesterday, Sarawak Oil Palm Plantation Owners Association (Soppoa) chairman Datuk Abdul Hamed Sepawi said it is unfair to levy a windfall tax on CPO, a commodity which is subjected to many factors in the international market beyond planters' control. (BT)
Toptrans to take over listing status of AMolek
The Ayer Molek Rubber Co (AMolek) listing status will be taken over by vendors of Toptrans Engineering SB in a back-door listing valued at RM7.5m. According to the restructuring proposal, a newco will take over AMolek’s 1.8m share equity for RM7.5m to be satisfied with a cash payment of RM4.17 per share, or the issuance of up to 196,600 newco shares at a price to be determined later. AMolek shareholders will also be given priority to subscribe to the newco shares to be offered by the vendors under a proposed offer for sale exercise. (Malaysian Reserve) China: Trade surplus may jump for October China may report its second-largest monthly trade surplus of the year tomorrow, indicating little lasting shift so far in addressing the imbalances in global spending and capital flows set to dominate a summit of the Group of 20. The USD25bn median forecast for October’s surplus compares with a USD16.9bn surplus in September. China’s export growth is estimated to cool to 23% in October y-o-y, compared with a 25.1% gain in September. (Bloomberg)
20101109 0852 Biofeuls Related News. This is interesting !
Factory Turns Chicken Fat to Diesel (Source: CME)
Agricultural giant Tyson Foods Inc. and fuel developer Syntroleum Corp. will announce that they have successfully opened a plant that makes diesel from chicken fat and leftover food grease. But they say their new venture won't survive unless Congress gives them a hefty tax break, an argument that many other alternative energy projects are also making. Tyson and Syntroleum say they've begun in recent weeks to make diesel and jet fuel from chicken fat, beef tallow and a range of greases and oils at a plant they've built in Geismar, La., south of Baton Rouge. The raw materials are leftovers from Tyson's meat-processing plants and other food-processing factories and restaurants. The Louisiana refinery has the capacity to produce 75 million gallons of fat-based fuel annually making it tiny by oil-industry standards but among the bigger alternative-fuel plants in the U.S.
Buyers include oil companies mandated by federal law to mix renewable fuel into their conventional diesel, the companies say, though they wouldn't identify the purchasers, citing confidentiality agreements. The U.S. Air Force confirmed that it has contracted to buy about 40,000 gallons for testing the fuel for potential use in planes. The companies contend that the fuel won't be economically viable unless Congress restores a $1-a-gallon federal tax credit that used to go to companies that mixed alternative fuels into petroleum-based diesel. That break expired at the end of last year, when the $170 million Louisiana plant was under construction. Had Syntroleum known Congress would let the break lapse, the company probably wouldn't have built the plant, said Jeff Bigger, a company senior vice president. Jeff Webster, a Tyson group vice president, said that if the tax break isn't extended, "The whole green-fuels industry in the U.S. is going to go down."
Biofuel worse for climate than fossil fuel - study
BRUSSELS, Nov 8 (Reuters) - European plans to promote biofuels will drive farmers to convert 69,000 square km of wild land into fields and plantations, depriving the poor of food and accelerating climate change, a report warned on Monday.
The impact equates to an area the size of the Republic of Ireland.
Agricultural giant Tyson Foods Inc. and fuel developer Syntroleum Corp. will announce that they have successfully opened a plant that makes diesel from chicken fat and leftover food grease. But they say their new venture won't survive unless Congress gives them a hefty tax break, an argument that many other alternative energy projects are also making. Tyson and Syntroleum say they've begun in recent weeks to make diesel and jet fuel from chicken fat, beef tallow and a range of greases and oils at a plant they've built in Geismar, La., south of Baton Rouge. The raw materials are leftovers from Tyson's meat-processing plants and other food-processing factories and restaurants. The Louisiana refinery has the capacity to produce 75 million gallons of fat-based fuel annually making it tiny by oil-industry standards but among the bigger alternative-fuel plants in the U.S.
Buyers include oil companies mandated by federal law to mix renewable fuel into their conventional diesel, the companies say, though they wouldn't identify the purchasers, citing confidentiality agreements. The U.S. Air Force confirmed that it has contracted to buy about 40,000 gallons for testing the fuel for potential use in planes. The companies contend that the fuel won't be economically viable unless Congress restores a $1-a-gallon federal tax credit that used to go to companies that mixed alternative fuels into petroleum-based diesel. That break expired at the end of last year, when the $170 million Louisiana plant was under construction. Had Syntroleum known Congress would let the break lapse, the company probably wouldn't have built the plant, said Jeff Bigger, a company senior vice president. Jeff Webster, a Tyson group vice president, said that if the tax break isn't extended, "The whole green-fuels industry in the U.S. is going to go down."
Biofuel worse for climate than fossil fuel - study
BRUSSELS, Nov 8 (Reuters) - European plans to promote biofuels will drive farmers to convert 69,000 square km of wild land into fields and plantations, depriving the poor of food and accelerating climate change, a report warned on Monday.
The impact equates to an area the size of the Republic of Ireland.
20101109 0851 Global Market News.
Oil falls first day in seven on euro zone woes
SINGAPORE, Nov 9 (Reuters) - Oil fell for the first session in seven as concern about euro zone debt provided support for the dollar, while forecasts indicated U.S. crude stockpiles rose for a fifth time in six weeks.
"It's just a general return to risk aversion that is driving the markets today," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.
Nov. 9 (Bloomberg) -
OIL: Crude falls from 2-year high to below $87/bbl
TOKYO, Nov 9 (Reuters) - U.S. crude futures retreated from a two-year high to fall below $87 a barrel on Tuesday, after jumping almost 7 percent in the previous six sessions, as the dollar recovered some ground.
"While the price is inching up, we think the terms of trade are going against OPEC countries and the increase in the price did not even compensate for the loss in the dollar value and the increase in the price of commodities," said Shokri Ghanem, chairman of Libya's National Oil Corporation.
COMMODITY MARKETS: Markets rally despite dollar; gold above $1,400
NEW YORK/LONDON, Nov 8 (Reuters) - Gold climbed to an all-time record high on Monday for a third running day, powered by worries over Ireland's debt, while oil and copper hit multi-year peaks as the Federal Reserve's move to bolster the
"Investors are looking for real assets and almost all commodities are benefiting from that as a class," said Carsten Fritsch, an analyst at Germany's Commerzbank.
GLOBAL MARKETS: World stocks pause from rally as dollar rises
NEW YORK, Nov 8 (Reuters) - World stocks weakened on Monday as renewed European debt concerns and a sign of recovery for the U.S. labor market sent the euro reeling versus the dollar, while gold surged on inflation worry.
"We're finally seeing the market turn its gaze away from Fed easing and toward these ongoing problems in peripheral Europe," said Matthew Strauss, senior strategist at RBC Capital Markets in Toronto.
PRECIOUS-Gold down but remains within sight of record
LONDON, Nov 8 (Reuters) - Gold slipped for the first time in three sessions on Monday but remained near record highs after a pick-up in the dollar dented precious metals prices. The gold price has risen by about 5 percent in the last five trading days, driven by the drop in the U.S. currency after the Federal Reserve last week detailed its plans to buy over half a trillion dollars' worth of Treasuries to revive the economy.
FOREX-Euro hurt as peripheral debt jitters resurface
LONDON, Nov 8 (Reuters) - The euro fell broadly on Monday on renewed concerns about euro zone peripheral debt while Friday's solid U.S. jobs data supported the dollar.
With the U.S. Federal Reserve's decision to launch more quantitative easing out of the way, euro zone debt problems seemed to have resurfaced on traders' radars.
Bernanke answers Fed's global critics
JACKSONVILLE, Fla., Nov 5 (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday defended the U.S. central bank's bond-buying against beggar-thy-neighbor criticism, saying the return to a strong U.S. economy was critical for global stability.
He suggested doing so would bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing.
Global anger swells at U.S. Fed actions
WASHINGTON/BEIJING, Nov 5 (Reuters) - Global anger at a fresh round of liquidity injections into the U.S. economy swelled on Friday as Germany called the move "clueless" and emerging nations protested that it will wreak havoc on them.
Harsh criticism poured in as President Barack Obama headed for Asia on a trip he had hoped to use as a springboard for pressuring China to revalue its yuan but may end up in a fractious Group of 20 leaders summit next week.
World Bank chief surprises with gold standard idea
LONDON, Nov 8 (Reuters) - Leading economies should consider adopting a modified global gold standard to guide currency rates, World Bank president Robert Zoellick said on Monday in a surprise proposal before a potentially acrimonious G20 summit.
Writing in the Financial Times, Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.
Gold hits new high, dollar rebounds
LONDON, Nov 8 (Reuters) - Gold hit a new high, stoked by rising inflation expectations following the Federal Reserve's return to asset buying, and the dollar gained in a hang-over from last week's relatively upbeat U.S. jobs data.
"As we've had a good run on positive U.S. data, the market is buying back an oversold dollar," said Keiji Matsumoto, strategist at Nikko Cordial Securities.
SINGAPORE, Nov 9 (Reuters) - Oil fell for the first session in seven as concern about euro zone debt provided support for the dollar, while forecasts indicated U.S. crude stockpiles rose for a fifth time in six weeks.
"It's just a general return to risk aversion that is driving the markets today," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.
Nov. 9 (Bloomberg) -
OIL: Crude falls from 2-year high to below $87/bbl
TOKYO, Nov 9 (Reuters) - U.S. crude futures retreated from a two-year high to fall below $87 a barrel on Tuesday, after jumping almost 7 percent in the previous six sessions, as the dollar recovered some ground.
"While the price is inching up, we think the terms of trade are going against OPEC countries and the increase in the price did not even compensate for the loss in the dollar value and the increase in the price of commodities," said Shokri Ghanem, chairman of Libya's National Oil Corporation.
COMMODITY MARKETS: Markets rally despite dollar; gold above $1,400
NEW YORK/LONDON, Nov 8 (Reuters) - Gold climbed to an all-time record high on Monday for a third running day, powered by worries over Ireland's debt, while oil and copper hit multi-year peaks as the Federal Reserve's move to bolster the
"Investors are looking for real assets and almost all commodities are benefiting from that as a class," said Carsten Fritsch, an analyst at Germany's Commerzbank.
GLOBAL MARKETS: World stocks pause from rally as dollar rises
NEW YORK, Nov 8 (Reuters) - World stocks weakened on Monday as renewed European debt concerns and a sign of recovery for the U.S. labor market sent the euro reeling versus the dollar, while gold surged on inflation worry.
"We're finally seeing the market turn its gaze away from Fed easing and toward these ongoing problems in peripheral Europe," said Matthew Strauss, senior strategist at RBC Capital Markets in Toronto.
PRECIOUS-Gold down but remains within sight of record
LONDON, Nov 8 (Reuters) - Gold slipped for the first time in three sessions on Monday but remained near record highs after a pick-up in the dollar dented precious metals prices. The gold price has risen by about 5 percent in the last five trading days, driven by the drop in the U.S. currency after the Federal Reserve last week detailed its plans to buy over half a trillion dollars' worth of Treasuries to revive the economy.
FOREX-Euro hurt as peripheral debt jitters resurface
LONDON, Nov 8 (Reuters) - The euro fell broadly on Monday on renewed concerns about euro zone peripheral debt while Friday's solid U.S. jobs data supported the dollar.
With the U.S. Federal Reserve's decision to launch more quantitative easing out of the way, euro zone debt problems seemed to have resurfaced on traders' radars.
Bernanke answers Fed's global critics
JACKSONVILLE, Fla., Nov 5 (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday defended the U.S. central bank's bond-buying against beggar-thy-neighbor criticism, saying the return to a strong U.S. economy was critical for global stability.
He suggested doing so would bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing.
Global anger swells at U.S. Fed actions
WASHINGTON/BEIJING, Nov 5 (Reuters) - Global anger at a fresh round of liquidity injections into the U.S. economy swelled on Friday as Germany called the move "clueless" and emerging nations protested that it will wreak havoc on them.
Harsh criticism poured in as President Barack Obama headed for Asia on a trip he had hoped to use as a springboard for pressuring China to revalue its yuan but may end up in a fractious Group of 20 leaders summit next week.
World Bank chief surprises with gold standard idea
LONDON, Nov 8 (Reuters) - Leading economies should consider adopting a modified global gold standard to guide currency rates, World Bank president Robert Zoellick said on Monday in a surprise proposal before a potentially acrimonious G20 summit.
Writing in the Financial Times, Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.
Gold hits new high, dollar rebounds
LONDON, Nov 8 (Reuters) - Gold hit a new high, stoked by rising inflation expectations following the Federal Reserve's return to asset buying, and the dollar gained in a hang-over from last week's relatively upbeat U.S. jobs data.
"As we've had a good run on positive U.S. data, the market is buying back an oversold dollar," said Keiji Matsumoto, strategist at Nikko Cordial Securities.
20101109 0848 Soy Oil & Plam Oil Related News.
U.S. soy product futures ended lower in unison with soybeans. Soyoil futures stumbled on traders taking profits ahead of Tuesday's crop reports after climbing to 2 year highs overnight. Soymeal fell, pressured by spillover from soybeans and positioning in front of Tuesday's USDA crop updates. Dec soyoil settled 0.21c or 0.4% lower at 52.01 cents a pound. Dec soymeal ended $3.10 or 0.9% lower at $344.90 a short ton. (Source: CME)
ANALYSIS-U.S. Fed's QE2 raises alarm of commodity bubble
LONDON/SINGAPORE, Nov 5 (Reuters) - A commodities buying spree spurred by U.S. quantitative easing has raised alarm of an inflationary bubble reminiscent of 2008 when oil and other industrial raw materials struck all-time highs before the crash.
In the run up to Wednesday's announcement from the U.S. Federal Reserve, commodity traders said dollar-weakness associated with QE was largely factored in.
Palm oil at over 2-yr highs on floods, China prices
KUALA LUMPUR, Nov 8 (Reuters) - Malaysian crude palm oil futures jumped more than 4 percent in early trade, driven by supply worries stoked by floods in some palm growing states in the country and rising soyoil prices in China.
"Traders were covering positions after a three-day holiday as soyoil on China's Dalian rose on speculative buying," said a trader with a foreign brokerage in Kuala Lumpur. "Some investors expect prices to go higher due to the floods in Northern Malaysia."
Dutch buyers to import only green palm oil by 2015
KUALA LUMPUR, Nov 6 (Reuters) - Dutch vegetable oil suppliers have pledged to order only eco-friendly palm oil cargoes by 2015 as consumers and green groups continue to scrutinise the sector, an industry official said.
Dubbed the Dutch Taskforce on Sustainable Palm Oil, the initiative will get local firms to pledge to buy palm oil from estates that do not clear forests or peatlands in Southeast Asia to expand, said Frans Claassen, an official with the taskforce.
Asian buyers, emissions in focus at green palm oil meet
JAKARTA/LONDON, Nov 8 (Reuters) - Buoyed by growing green palm oil production, an industry body will use a meeting this week in Jakarta to persuade top vegetable oil consumers India and China to start buying.
The Roundtable on Sustainable Palm Oil (RSPO), which created voluntary standards that include pledges to preserve forests, has certified more than seven percent of 45 million tonnes in global annual output in over two years.
US soy prices to climb with half of crop unsold
CHICAGO, Nov 5 (Reuters) - Grain companies will have to pay up to get deep-pocketed U.S. farmers to part with soybeans, as about half of the crop remains unsold at a time when soymeal demand rises seasonally and the export program could be extended by planting delays in Brazil.
Soybean basis bids -- the amount above or below Chicago Board of Trade benchmark futures prices that grain merchants pay to farmers -- are poised to climb at least until year end after hitting a low for 2010 during harvest last month.
ANALYSIS-U.S. Fed's QE2 raises alarm of commodity bubble
LONDON/SINGAPORE, Nov 5 (Reuters) - A commodities buying spree spurred by U.S. quantitative easing has raised alarm of an inflationary bubble reminiscent of 2008 when oil and other industrial raw materials struck all-time highs before the crash.
In the run up to Wednesday's announcement from the U.S. Federal Reserve, commodity traders said dollar-weakness associated with QE was largely factored in.
Palm oil at over 2-yr highs on floods, China prices
KUALA LUMPUR, Nov 8 (Reuters) - Malaysian crude palm oil futures jumped more than 4 percent in early trade, driven by supply worries stoked by floods in some palm growing states in the country and rising soyoil prices in China.
"Traders were covering positions after a three-day holiday as soyoil on China's Dalian rose on speculative buying," said a trader with a foreign brokerage in Kuala Lumpur. "Some investors expect prices to go higher due to the floods in Northern Malaysia."
Dutch buyers to import only green palm oil by 2015
KUALA LUMPUR, Nov 6 (Reuters) - Dutch vegetable oil suppliers have pledged to order only eco-friendly palm oil cargoes by 2015 as consumers and green groups continue to scrutinise the sector, an industry official said.
Dubbed the Dutch Taskforce on Sustainable Palm Oil, the initiative will get local firms to pledge to buy palm oil from estates that do not clear forests or peatlands in Southeast Asia to expand, said Frans Claassen, an official with the taskforce.
Asian buyers, emissions in focus at green palm oil meet
JAKARTA/LONDON, Nov 8 (Reuters) - Buoyed by growing green palm oil production, an industry body will use a meeting this week in Jakarta to persuade top vegetable oil consumers India and China to start buying.
The Roundtable on Sustainable Palm Oil (RSPO), which created voluntary standards that include pledges to preserve forests, has certified more than seven percent of 45 million tonnes in global annual output in over two years.
US soy prices to climb with half of crop unsold
CHICAGO, Nov 5 (Reuters) - Grain companies will have to pay up to get deep-pocketed U.S. farmers to part with soybeans, as about half of the crop remains unsold at a time when soymeal demand rises seasonally and the export program could be extended by planting delays in Brazil.
Soybean basis bids -- the amount above or below Chicago Board of Trade benchmark futures prices that grain merchants pay to farmers -- are poised to climb at least until year end after hitting a low for 2010 during harvest last month.
Monday, November 8, 2010
20101108 1839 FCPO EOD Daily Chart Study.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : rising higher, buyer still rule.
Support : 3270, 3200, 3150 level.
Resistant : 3300, 3350, 3420 level.
Comment :
FCPO rallied for the second day recorded huge gain in slightly lower volume traded after market opened gap up and tested higher ground followed by buyer decision to sealed in profit pressed price to closed off the high of the day. Daily chart formed a shooting star doji bar candle positioned way above upper Bollinger band level as the band width continue to expand outwards hinted a potential pullback correction within an upside biased market reading. Meanwhile, soy oil and crude oil futures price are currently trading lower as US Dollar rebounding higher.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20101108 1823 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Traded within 6 points range market FKLI closed recorded gain with improving but relatively low volume transacted catching up with regional market that traded higher last Friday after resume trading from last Friday holiday. Daily chart formed a doji bar candle closed positioned little above upper Bollinger upper band level indicates that there could be a correction taking place soon but the underlying market reading still remained 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.
20101108 1332 Breaking News : Malaysia Crude Palm Oil Data.
Reuters Poll on Malaysia Crude Palm Oil Data :
Oct 2010 Export Down 8% from Sep 2010
Oct 2010 Output Up 9.9% from Sep 2010
Oct 2010 Stocks Up 14.2% from Sep 2010 to 1.92 million tonnes at 9 month high.
Oct 2010 Export Down 8% from Sep 2010
Oct 2010 Output Up 9.9% from Sep 2010
Oct 2010 Stocks Up 14.2% from Sep 2010 to 1.92 million tonnes at 9 month high.
20101108 1109 Local & Global Economics News.
External reserves: Higher in the second half of October 2010. External reserves increased slightly in the second half of October 2010 to RM324.9b (USD105.3b) as at 29 October 2010 from RM322.7b (USD104.6b) on 15 October 2010. The latest reserve amount is equivalent to 8.8 months of retained imports and 4.5 times short-term external debt. (Source: Bank Negara)
U.S: Consumer credit rose USD 2.1b in September led by a surge in non-revolving credit such as college loans and auto financing. (Source: Bloomberg)
U.S: Productivity rises, labor costs drop in 3Q10 as employers squeezed more productivity from workers. Employee output per hour rose at a 1.9% annual rate, more than forecast, after falling 1.8% in the previous three months. Worker costs fell for the fifth time in the past seven quarters. (Source: Bloomberg)
Ireland: Government deepens 'last chance' budget cuts . Ireland is accelerating efforts to cut its budget deficit as European Central Bank President Jean- Claude Trichet swings behind the country's drive to avert a European Union-led bailout. The finance ministry announced savings and tax increases for next year worth EUR 6b (USD 8.5b), or 3.6% of gross domestic product. A further EUR 9b will be cut in the following three years. (Source: Bloomberg)
China: Says Fed stimulus risks hurting global recovery if the U.S. Federal Reserve does not explain last week's decision to purchase bonds to pump money into the world's biggest economy. "Many countries are worried about the impact of the policy on their economies," Vice Foreign Minister Cui Tiankai said at a press briefing in Beijing. "It would be appropriate for someone to step forward and give us an explanation, otherwise international confidence in the recovery and growth of the global economy might be hurt." (Source: Bloomberg)
Vietnam: Raises interest rates for first time this year after inflation accelerated to a 19-month high last month. The so-called base rate increases to 9%. The refinancing rate will rise to 9% from 8%, while the discount rate rises the same amount, to 7%. (Source: Bloomberg)
Indonesia: Economic growth unexpectedly slows to 5.8%
Indonesia’s economic growth unexpectedly slowed last quarter, cooling an expansion that has spurred capital inflows, pushed stocks to a record and lifted the Rupiah to a three-year high. Gross domestic product increased 5.8% in the three months to 30 September from a year earlier, after growing a revised 6.19% in the previous quarter, according to the Central Bureau of Statistics. (Bloomberg)
Taiwan: Consumer prices climb a second straight month
Taiwan’s consumer prices rose for a second straight month after a typhoon destroyed crops, pushing up food and transportation costs. The consumer price index advanced 0.56% in October from a year earlier, the statistics bureau said. (Bloomberg)
US: October payroll increase bodes well for US consumer spending
Employment in the US rose in October for the first time in five months, a sign the world’s largest economy may strengthen in the final quarter of the year. Payrolls climbed by 151,000 workers, exceeding all estimates in a Bloomberg News survey of economists, after a revised 41,000 drop in September that was smaller than initially estimated, Labor Department data showed in Washington. (Bloomberg)
US: Trade gap probably narrowed in September
The trade deficit probably narrowed in September as a weaker dollar boosted US exports, economists said before a report due this week. The gap shrank to USD45bn from USD46.3bn the prior month, according to the median of 57 estimates in a Bloomberg News survey ahead of Commerce Department figures on 10 Nov. (Bloomberg)
U.S: Consumer credit rose USD 2.1b in September led by a surge in non-revolving credit such as college loans and auto financing. (Source: Bloomberg)
U.S: Productivity rises, labor costs drop in 3Q10 as employers squeezed more productivity from workers. Employee output per hour rose at a 1.9% annual rate, more than forecast, after falling 1.8% in the previous three months. Worker costs fell for the fifth time in the past seven quarters. (Source: Bloomberg)
Ireland: Government deepens 'last chance' budget cuts . Ireland is accelerating efforts to cut its budget deficit as European Central Bank President Jean- Claude Trichet swings behind the country's drive to avert a European Union-led bailout. The finance ministry announced savings and tax increases for next year worth EUR 6b (USD 8.5b), or 3.6% of gross domestic product. A further EUR 9b will be cut in the following three years. (Source: Bloomberg)
China: Says Fed stimulus risks hurting global recovery if the U.S. Federal Reserve does not explain last week's decision to purchase bonds to pump money into the world's biggest economy. "Many countries are worried about the impact of the policy on their economies," Vice Foreign Minister Cui Tiankai said at a press briefing in Beijing. "It would be appropriate for someone to step forward and give us an explanation, otherwise international confidence in the recovery and growth of the global economy might be hurt." (Source: Bloomberg)
Vietnam: Raises interest rates for first time this year after inflation accelerated to a 19-month high last month. The so-called base rate increases to 9%. The refinancing rate will rise to 9% from 8%, while the discount rate rises the same amount, to 7%. (Source: Bloomberg)
Indonesia: Economic growth unexpectedly slows to 5.8%
Indonesia’s economic growth unexpectedly slowed last quarter, cooling an expansion that has spurred capital inflows, pushed stocks to a record and lifted the Rupiah to a three-year high. Gross domestic product increased 5.8% in the three months to 30 September from a year earlier, after growing a revised 6.19% in the previous quarter, according to the Central Bureau of Statistics. (Bloomberg)
Taiwan: Consumer prices climb a second straight month
Taiwan’s consumer prices rose for a second straight month after a typhoon destroyed crops, pushing up food and transportation costs. The consumer price index advanced 0.56% in October from a year earlier, the statistics bureau said. (Bloomberg)
US: October payroll increase bodes well for US consumer spending
Employment in the US rose in October for the first time in five months, a sign the world’s largest economy may strengthen in the final quarter of the year. Payrolls climbed by 151,000 workers, exceeding all estimates in a Bloomberg News survey of economists, after a revised 41,000 drop in September that was smaller than initially estimated, Labor Department data showed in Washington. (Bloomberg)
US: Trade gap probably narrowed in September
The trade deficit probably narrowed in September as a weaker dollar boosted US exports, economists said before a report due this week. The gap shrank to USD45bn from USD46.3bn the prior month, according to the median of 57 estimates in a Bloomberg News survey ahead of Commerce Department figures on 10 Nov. (Bloomberg)
20101108 1108 Malaysia Corporate News.
Maybank: Fixes new shares under dividend reinvestment at RM7.70. Malayan Banking Bhd has fixed the issue price of new Maybank shares to be issued under the dividend reinvestment plan at RM7.70 per share. On behalf of the Board, Maybank IB, announced the Book Closure Date pursuant to the Final Dividend and Dividend Reinvestment Plan has been fixed for 18 November 2010. The new Maybank Shares arising from the Dividend Reinvestment Plan will be listed on the Main Market of Bursa Malaysia Securities Berhad on 21 December 2010. (Source: Bursa Malaysia)
LBS Bina: China Project expected to start next year. LBS Bina Group Bhd's China project in the southern city of Zhuhai with an estimated gross development value of (GDV) of RM5b is expected to start in the third or fourth quarter of next year. Last month, LBS Bina announced that it will sell a 10% equity stake in its Chinese joint ventures (JV) to its JV partner, Zhuhai Special Economic Zone Long Yi Enterprises Co for RMB200m (RM9.25m). Each party will own 50% of the JVs post transaction. The agreement would pave way to kick-start the property project which was deadlocked in the past. (Source: The Edge Financial Daily)
Mulpha: Goldman Sachs increases Mulpha stake to 5.74%. Mulpha International Bhd, which saw active trading recently on news that its associate FKP property was a takeover target, saw The Goldman Sachs Group Inc accumulate more shares in Mulpha. Goldman Sachs increased its shareholding to 135.2m shares or 5.74% equity interest. It was reported that FKP was a possible takeover target by Stockland, a leading Australian property developer. (Source: The Edge Financial Weekly)
Sapura Resources: Disposes of stakes in APIIT, UCTI. Sapura Resources Bhd (SRB) has proposed to dispose of 51% equity interest each in APIIT Sdn Bhd and Asia Pacific UCTI Sdn Bhd (UCTI) to Ontime Sdn Bhd for RM102m. SRB said net proceeds from the proposed disposal may be channelled towards the acquisition of new businesses, expansion of existing business and to pare down borrowings. The proposed disposal is expected to result in a one-off net gain of RM68.9m and upon completion of the exercise. (Source: The Star)
MCA buys 42% stake in Star for RM1.28bn
MCA last Friday announced it has bought a 42.4% stake in Star Publications (M) Bhd for RM1.28bn, or RM4.09 a share, from its wholly-owned subsidiary Huaren Holdings SB and is in the process of maintaining its beneficial interest in Star. “The transfer is effected for the purpose of reorganising MCA’s investments, whereby Huaren Holdings will divest its passive investment in Star and increase focus on its investments in unquoted shares and other assets, in order to achieve greater management efficiency and provide maximum return to stakeholders,” said MCA in a statement. “MCA’s investments in Star will continue to be passive and long-term in nature” it said. (StarBiz)
Axiata signs 5-year pact with Ericsson Axiata Group Bhd will, for the next five years, streamline its procurement of products and services with Ericsson to realize business efficiencies and competitive advantage though cash flow improvement. Earlier last week, they signed an agreement to facilitate regular exchange of information on technical and technological areas relating to products, works and services purchased by Axiata group of companies.(StarBiz)
UEM Land bid gets 40% votes
UEM Land Holdings Bhd’s proposed takeover of Sunrise Bhd for RM1.39bn, or RM2.80 per share, has received an acceptance level of 40.3% from three major shareholders of Sunrise. UEM Land managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said the group had received irrevocable undertakings to accept its offer from Datuk Tong Kooi Ong, Tan Sri Tan Chee Sing and Datuk Lim Kim Huat. According to filings with Bursa Malaysia, Casa Unggul SB (a company controlled by Tong) owns 24.41% stake in Sunrise. Other shareholders include Phoenixflex SB (8.46%), Lim (7.24%), Tong (0.22%) and Tan (0.01%). (StarBiz)
Ramunia OGW signs MoU with Dongnam Marine Crane
Ramunia Holdings Bhd announced that its wholly-owned subsidiary, O&G Works SB (OGW) signed a memorandum of understanding with Dongnam Marine Crane Co Ltd (DMC) from South Korea. The MoU will provide a preliminary framework for a potential collaboration between OGW and DMC to undertake tendering. Bidding and manufacturing of any contract involving engineering, design, procurement and fabrication of offshore pedestal cranes; marine cranes. And any other make of cranes for the oil and gas industry and any other industries which require such supplies. (Malaysian Reserve)
Sarawak Cable inks contract worth RM98.6m
Sarawak Cable Bhd’s subsidiary Universal Cable (Sarawak) SB (UCS) and JV partner Sinohydro Corporation (M) SB (Sinohydro) have received an RM98.6m contract from Sarawak Energy Bhd for the design, supply, delivery, construction and commissioning of 275KV Murum-Murum Junction Transmission Line. (Malaysian Reserve)
LBS Bina: China Project expected to start next year. LBS Bina Group Bhd's China project in the southern city of Zhuhai with an estimated gross development value of (GDV) of RM5b is expected to start in the third or fourth quarter of next year. Last month, LBS Bina announced that it will sell a 10% equity stake in its Chinese joint ventures (JV) to its JV partner, Zhuhai Special Economic Zone Long Yi Enterprises Co for RMB200m (RM9.25m). Each party will own 50% of the JVs post transaction. The agreement would pave way to kick-start the property project which was deadlocked in the past. (Source: The Edge Financial Daily)
Mulpha: Goldman Sachs increases Mulpha stake to 5.74%. Mulpha International Bhd, which saw active trading recently on news that its associate FKP property was a takeover target, saw The Goldman Sachs Group Inc accumulate more shares in Mulpha. Goldman Sachs increased its shareholding to 135.2m shares or 5.74% equity interest. It was reported that FKP was a possible takeover target by Stockland, a leading Australian property developer. (Source: The Edge Financial Weekly)
Sapura Resources: Disposes of stakes in APIIT, UCTI. Sapura Resources Bhd (SRB) has proposed to dispose of 51% equity interest each in APIIT Sdn Bhd and Asia Pacific UCTI Sdn Bhd (UCTI) to Ontime Sdn Bhd for RM102m. SRB said net proceeds from the proposed disposal may be channelled towards the acquisition of new businesses, expansion of existing business and to pare down borrowings. The proposed disposal is expected to result in a one-off net gain of RM68.9m and upon completion of the exercise. (Source: The Star)
MCA buys 42% stake in Star for RM1.28bn
MCA last Friday announced it has bought a 42.4% stake in Star Publications (M) Bhd for RM1.28bn, or RM4.09 a share, from its wholly-owned subsidiary Huaren Holdings SB and is in the process of maintaining its beneficial interest in Star. “The transfer is effected for the purpose of reorganising MCA’s investments, whereby Huaren Holdings will divest its passive investment in Star and increase focus on its investments in unquoted shares and other assets, in order to achieve greater management efficiency and provide maximum return to stakeholders,” said MCA in a statement. “MCA’s investments in Star will continue to be passive and long-term in nature” it said. (StarBiz)
Axiata signs 5-year pact with Ericsson Axiata Group Bhd will, for the next five years, streamline its procurement of products and services with Ericsson to realize business efficiencies and competitive advantage though cash flow improvement. Earlier last week, they signed an agreement to facilitate regular exchange of information on technical and technological areas relating to products, works and services purchased by Axiata group of companies.(StarBiz)
UEM Land bid gets 40% votes
UEM Land Holdings Bhd’s proposed takeover of Sunrise Bhd for RM1.39bn, or RM2.80 per share, has received an acceptance level of 40.3% from three major shareholders of Sunrise. UEM Land managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said the group had received irrevocable undertakings to accept its offer from Datuk Tong Kooi Ong, Tan Sri Tan Chee Sing and Datuk Lim Kim Huat. According to filings with Bursa Malaysia, Casa Unggul SB (a company controlled by Tong) owns 24.41% stake in Sunrise. Other shareholders include Phoenixflex SB (8.46%), Lim (7.24%), Tong (0.22%) and Tan (0.01%). (StarBiz)
Ramunia OGW signs MoU with Dongnam Marine Crane
Ramunia Holdings Bhd announced that its wholly-owned subsidiary, O&G Works SB (OGW) signed a memorandum of understanding with Dongnam Marine Crane Co Ltd (DMC) from South Korea. The MoU will provide a preliminary framework for a potential collaboration between OGW and DMC to undertake tendering. Bidding and manufacturing of any contract involving engineering, design, procurement and fabrication of offshore pedestal cranes; marine cranes. And any other make of cranes for the oil and gas industry and any other industries which require such supplies. (Malaysian Reserve)
Sarawak Cable inks contract worth RM98.6m
Sarawak Cable Bhd’s subsidiary Universal Cable (Sarawak) SB (UCS) and JV partner Sinohydro Corporation (M) SB (Sinohydro) have received an RM98.6m contract from Sarawak Energy Bhd for the design, supply, delivery, construction and commissioning of 275KV Murum-Murum Junction Transmission Line. (Malaysian Reserve)
20101108 0948 Global Market News.
OIL: Crude rises above $87/bbl to near 2-yr high
TOKYO, Nov 8 (Reuters) - U.S. crude futures extended gains for a sixth day to near a two-year high above $87 a barrel on Monday, getting support from a stronger-than-expected U.S. jobs report that restored confidence in the world's top oil consumer.
Oil was trading near $87.43 hit on Friday, the highest intraday price since $89.82 struck on Oct. 9, 2008. Prices rose $5.42, or 6.6 percent, last week, the biggest percentage gain since the week to Feb. 19.
COMMODITY MARKETS: Gold hits record high on inflation outlook
NEW YORK/LONDON Nov 5 (Reuters) - Gold hit a record peak on Friday and industrial metals and oil pushed higher as investors took a surprisingly robust U.S. jobs report as a hint that the economy was in better shape than previously thought.
"We will see the dollar in a protracted secular bear market and see commodities rise across the board," said Michael Pento, senior economist with Euro Pacific Capital in New York.
GLOBAL MARKETS: Dollar jumps, stocks hold gains on US jobs data
NEW YORK, Nov 5 (Reuters) - The dollar soared and stocks posted modest gains on Friday after better-than-expected U.S. jobs data fueled hopes of faster economic recovery.
"It's both better than people had been looking for, and it's another nail in the coffin of a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, referring to fears the economy would slide back into recession.
China belittles U.S. initiatives ahead of G20
BEIJING/BERLIN, Japan, Nov 5 (Reuters) - China rebuffed on Friday a U.S. plan to set target limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless", setting the stage for what could be a fractious G20 summit next week.
Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.
BOJ holds fire after Fed, gets asset buying plan going
TOKYO, Nov 5 (Reuters) - The Bank of Japan refrained from further monetary easing on Friday, resisting for now any temptation to boost its asset buying scheme to keep pace with the Federal Reserve's new economic stimulus.
The BOJ is the third major central bank to hold fire after the Fed's Nov. 3 move to pump $600 billion more into the struggling U.S. economy by buying government bonds.
Singapore vies for London's shipping crown
LONDON/SINGAPORE, Nov 4 (Reuters) - London's position as the world's top shipping hub is being challenged by emerging contenders such as Singapore and possibly Shanghai as rising Asian economic powerhouses China and India suck in goods.
Chinese commodity demand is an increasingly pivotal factor driving freight market activity eastwards, while Asia dominates shipbuilding. Indian appetite for raw materials is also set to grow in the coming years, all enabling Singapore to set out its stall as a centre for the ship industry.
PRECIOUS-Gold dips as economic sentiment improves post-Fed
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around $1,394 an ounce on Friday, before turning lower as the dollar firmed and the U.S. Federal Reserve's decision to buy more government bonds earlier this week improved risk sentiment.
Spot gold traded at $1,383.30 an ounce at 1036 GMT, against $1,392.25 late in New York on Thursday. U.S. gold futures for December delivery traded at $1,383.2.
FOREX-Dlr near lows, jobs data unlikely to offer succour
LONDON, Nov 5 (Reuters) - The dollar was mired near 11-month lows against a basket of currencies on Friday, while the Australian dollar hit 28-year highs as the Federal Reserve's stimulus package spurred investors appetite for risk.
Investor focus now turns to U.S. monthly jobs data and traders said any upside surprise from the numbers is likely to offer only a fleeting respite to the dollar. A weaker number could see the dollar-selling trend gather pace.
Bulls rule as stocks, commodities climb
HONG KONG, Nov 5 (Reuters) - Asian stocks rose for a fifth day, with commodity-related shares helping regional markets outperform other parts of the world this week after U.S. Federal Reserve action revived a move into riskier assets.
"What QE2 has done is that it added confidence to our view," said Shane Oliver, director of investment strategy and chief economist for AMP Capital in Sydney.
TOKYO, Nov 8 (Reuters) - U.S. crude futures extended gains for a sixth day to near a two-year high above $87 a barrel on Monday, getting support from a stronger-than-expected U.S. jobs report that restored confidence in the world's top oil consumer.
Oil was trading near $87.43 hit on Friday, the highest intraday price since $89.82 struck on Oct. 9, 2008. Prices rose $5.42, or 6.6 percent, last week, the biggest percentage gain since the week to Feb. 19.
COMMODITY MARKETS: Gold hits record high on inflation outlook
NEW YORK/LONDON Nov 5 (Reuters) - Gold hit a record peak on Friday and industrial metals and oil pushed higher as investors took a surprisingly robust U.S. jobs report as a hint that the economy was in better shape than previously thought.
"We will see the dollar in a protracted secular bear market and see commodities rise across the board," said Michael Pento, senior economist with Euro Pacific Capital in New York.
GLOBAL MARKETS: Dollar jumps, stocks hold gains on US jobs data
NEW YORK, Nov 5 (Reuters) - The dollar soared and stocks posted modest gains on Friday after better-than-expected U.S. jobs data fueled hopes of faster economic recovery.
"It's both better than people had been looking for, and it's another nail in the coffin of a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, referring to fears the economy would slide back into recession.
China belittles U.S. initiatives ahead of G20
BEIJING/BERLIN, Japan, Nov 5 (Reuters) - China rebuffed on Friday a U.S. plan to set target limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless", setting the stage for what could be a fractious G20 summit next week.
Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.
BOJ holds fire after Fed, gets asset buying plan going
TOKYO, Nov 5 (Reuters) - The Bank of Japan refrained from further monetary easing on Friday, resisting for now any temptation to boost its asset buying scheme to keep pace with the Federal Reserve's new economic stimulus.
The BOJ is the third major central bank to hold fire after the Fed's Nov. 3 move to pump $600 billion more into the struggling U.S. economy by buying government bonds.
Singapore vies for London's shipping crown
LONDON/SINGAPORE, Nov 4 (Reuters) - London's position as the world's top shipping hub is being challenged by emerging contenders such as Singapore and possibly Shanghai as rising Asian economic powerhouses China and India suck in goods.
Chinese commodity demand is an increasingly pivotal factor driving freight market activity eastwards, while Asia dominates shipbuilding. Indian appetite for raw materials is also set to grow in the coming years, all enabling Singapore to set out its stall as a centre for the ship industry.
PRECIOUS-Gold dips as economic sentiment improves post-Fed
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around $1,394 an ounce on Friday, before turning lower as the dollar firmed and the U.S. Federal Reserve's decision to buy more government bonds earlier this week improved risk sentiment.
Spot gold traded at $1,383.30 an ounce at 1036 GMT, against $1,392.25 late in New York on Thursday. U.S. gold futures for December delivery traded at $1,383.2.
FOREX-Dlr near lows, jobs data unlikely to offer succour
LONDON, Nov 5 (Reuters) - The dollar was mired near 11-month lows against a basket of currencies on Friday, while the Australian dollar hit 28-year highs as the Federal Reserve's stimulus package spurred investors appetite for risk.
Investor focus now turns to U.S. monthly jobs data and traders said any upside surprise from the numbers is likely to offer only a fleeting respite to the dollar. A weaker number could see the dollar-selling trend gather pace.
Bulls rule as stocks, commodities climb
HONG KONG, Nov 5 (Reuters) - Asian stocks rose for a fifth day, with commodity-related shares helping regional markets outperform other parts of the world this week after U.S. Federal Reserve action revived a move into riskier assets.
"What QE2 has done is that it added confidence to our view," said Shane Oliver, director of investment strategy and chief economist for AMP Capital in Sydney.
20101108 0942 Soy Oil & Palm Oil Related News.
KUALA LUMPUR, Nov 7 (Reuters) - Malaysian crude palm oil futures may hit 3,300 ringgit ($1,071) per tonne in the next few weeks as weather concerns plague global oilseed output, a top analyst said on Sunday. The estimate by Godrej International's Dorab Mistry assumes a 3.4 percent rise from current prices at a time of rising economic growth in top buyers China and India.
The weaker U.S. dollar has also triggered an inflow of funds into commodities as an inflation hedge and makes palm oil priced in the greenback much cheaper for overseas buyers. "However, I am afraid that (new) level will not be sufficient to ration demand," Mistry said in a speech due to be delivered at an oilseed conference in the southern China city of Guangzhou.
"The period of greatest tightness will be between February and May 2011 and we may require even higher prices in December and January to prepare the world for that tightness." Benchmark Malaysian prices this year have support from an output shortfall in Malaysia and, to some extent, in top producer Indonesia as El Nino's hotter weather dried up yields.
London-based Mistry said the subsequent back-to-back transition from El Nino to La Nina in the middle of 2010 has caused severe imbalances in the global climate and may further hurt overall oilseed production. La Nina can bring more rains to palm oil producing Southeast Asia that aids in oil palm pollination but the weather condition potentially triggers hotter weather in soyoil-exporting South America that can affect soybean crop yields.
"Even with current estimates of 67 million tonnes of beans for Brazil and 52 million for Argentina, the world's supply and demand fundamentals are very tight. Any loss due to La Nina will make it tighter," Mistry said. Mistry, head of vegetable oil trade in Godrej International, said cash Argentine soyoil may rise as much as 10 percent to $1,250 per tonne in the short term as consumers shift to soyoil after chasing tight rapeseed oil and sunseed oil supplies.
BEIJING, Nov 5 (Reuters) - Most Dalian corn contracts <0#DCC:> hit a record while soy <0#DSA:>, soyoil <0#DBY:> and palmoil <0#DCP:> futures touched their daily trading limits on Friday to track gains on the Chicago Board of Trade (CBOT). "All these rises are 'imported' rises because of a weaker U.S. dollar. We believe oilseeds will be stronger, following bullish crude oil prices," said Wang Ping, an analyst with Dongwu Futures Co Ltd based in Shanghai.
Dalian corn, which used to move in opposite direction from prices in Chicago because of government stocks, has recently been tracking rises on the Chicago Board of Trade <0#C:> as China may turn to more imports next year due to tight domestic supply, said Wang. The May corn contract was traded at an intraday high of 2,265 yuan ($340.1) per tonne.
Soyoil for May delivery rose to 9,898 yuan per tonne, the highest level since August 2008, while palmoil for the same month hit 9,000 yuan per tonne. The most-active soy contract rose as high as 4,657 yuan per tonne, also the strongest level since August 2008.
US soy product futures finish mixed, with soyoil climbing on spillover support from Asian markets. Crude palm oil futures on Malaysia's derivatives exchange hit fresh 27-month high and led soyoil higher, according to Global Commodity Analytics and Consulting, a US brokerage. Soymeal lost ground, as market participants bought soyoil and sold soymeal in spread traders, trader says. CBOT Dec soyoil ends up 0.97 cent at 52.22 cents per pound. CBOT Dec soymeal slips 20c to $348 per hundredweight. (Source: CME)
New Planting Rule Improves Palm Industry Image - Unilever (Source: CME)
A proposed new planting rule by the Roundtable on Sustainable Palm oil, that requires oil palm growers to get approvals from local communities, will improve the industry's image, a company executive at Unilever NV said. The industry has previously faced criticism by environmental groups that it cleared forest lands to cultivate oil palms. The new planting procedure--proposed by environmental groups and set to be adopted at the upcoming Roundtable conference in Jakarta next week--requires oil palm growers to prepare correct regulatory permits, documents that identify areas that fall under primary forest, or peat soils, and for new oil palm plantings from Jan. 1, 2010. Many growers say they are burdened with too many RSPO requirements and the new planting procedure would slow oil palm expansion particularly in Indonesia, leading to higher prices in the longer term as global demand increases.
"The planting rule is the only way to make sure planters adhere to RSPO principles and requirements," the Netherlands-based Jan Kees Vis, global director for sustainable sourcing development at Unilever, said. Jan Kees, also president at RSPO, said the planting rule would also put to rest deforestation charges made by environmental groups. The planting rule, if implemented, would also require growers to address all grievances with local communities before they commence operations on new areas. The RSPO, an industry consortium, was formed by the World Wildlife Fund and Unilever in 2004, which is adopting stringent and sustainable practices for palm-oil cultivation after palm oil producers in Malaysia and Indonesia were charged by environmental groups with cutting down forest trees and draining peat lands for oil palm cultivation.
The allegations led to blacklisting of some plantation firms by major food producers as they rushed to protect global brands by jumping on the sustainable bandwagon, demanding environ mentally friendly palm oil. Most palm oil producers have made that pledge to be fully certified by the RSPO in the next few years, but Jan Kees warned against a tendency to delay certification plans until demand picks up.
U.S. soy hits 25-month top on dollar, Fed push
SINGAPORE, Nov 5 (Reuters) - U.S. second-month soybean futures climbed to a 25-month high and wheat extended gains as funds flowed into commodities after the U.S. Federal Reserve's new stimulus plan boosted appetite for risk assets.
"There's a broad allocation for commodities at the moment," said Adam Davis, senior commodity analyst at Merricks Capital in Melbourne.
USDA confirms China rejected US corn shipment
WASHINGTON, Nov 4 (Reuters) - The U.S. Agriculture Department on Thursday confirmed that China has rejected a shipments of U.S. corn after it detected a genetically modified variety not yet approved in China.
"We understand that industry representatives are working directly with the Chinese on this matter. We continue to monitor the situation," a USDA spokeswoman said.
Argentina corn sowings seen higher-exchange
BUENOS AIRES, Nov 4 (Reuters) - Argentina's 2010/11 commercial-use corn area is seen rising to 3.15 million hectares from the previous forecast of 3.0 million hectares, the Buenos Aires Grains Exchange said on Thursday.
The exchange held its estimate for 2010/11 wheat production at a minimum of 12.1 million tonnes, and kept its forecast for 2010/11 soy area at 18.7 million hectares.
US corn supply seen falling to 15-year low
CHICAGO, Nov 4 (Reuters) - U.S. corn ending stocks will fall next year to their lowest level in 15 years, along with the stocks-to-use ratio, amid a shrinking crop and robust demand, a Reuters Poll of analysts showed.
A wet July and dry August has already lead the U.S. Agriculture Department to trim its corn yield estimate by 4 percent last month, and the analysts polled are expecting the USDA to trim its yield again on Tuesday at 8:30 a.m. EST (1330 GMT), when it releases its November crop production and supply/demand reports.
The weaker U.S. dollar has also triggered an inflow of funds into commodities as an inflation hedge and makes palm oil priced in the greenback much cheaper for overseas buyers. "However, I am afraid that (new) level will not be sufficient to ration demand," Mistry said in a speech due to be delivered at an oilseed conference in the southern China city of Guangzhou.
"The period of greatest tightness will be between February and May 2011 and we may require even higher prices in December and January to prepare the world for that tightness." Benchmark Malaysian prices this year have support from an output shortfall in Malaysia and, to some extent, in top producer Indonesia as El Nino's hotter weather dried up yields.
London-based Mistry said the subsequent back-to-back transition from El Nino to La Nina in the middle of 2010 has caused severe imbalances in the global climate and may further hurt overall oilseed production. La Nina can bring more rains to palm oil producing Southeast Asia that aids in oil palm pollination but the weather condition potentially triggers hotter weather in soyoil-exporting South America that can affect soybean crop yields.
"Even with current estimates of 67 million tonnes of beans for Brazil and 52 million for Argentina, the world's supply and demand fundamentals are very tight. Any loss due to La Nina will make it tighter," Mistry said. Mistry, head of vegetable oil trade in Godrej International, said cash Argentine soyoil may rise as much as 10 percent to $1,250 per tonne in the short term as consumers shift to soyoil after chasing tight rapeseed oil and sunseed oil supplies.
BEIJING, Nov 5 (Reuters) - Most Dalian corn contracts <0#DCC:> hit a record while soy <0#DSA:>, soyoil <0#DBY:> and palmoil <0#DCP:> futures touched their daily trading limits on Friday to track gains on the Chicago Board of Trade (CBOT). "All these rises are 'imported' rises because of a weaker U.S. dollar. We believe oilseeds will be stronger, following bullish crude oil prices," said Wang Ping, an analyst with Dongwu Futures Co Ltd based in Shanghai.
Dalian corn, which used to move in opposite direction from prices in Chicago because of government stocks, has recently been tracking rises on the Chicago Board of Trade <0#C:> as China may turn to more imports next year due to tight domestic supply, said Wang. The May corn contract
Soyoil for May delivery
US soy product futures finish mixed, with soyoil climbing on spillover support from Asian markets. Crude palm oil futures on Malaysia's derivatives exchange hit fresh 27-month high and led soyoil higher, according to Global Commodity Analytics and Consulting, a US brokerage. Soymeal lost ground, as market participants bought soyoil and sold soymeal in spread traders, trader says. CBOT Dec soyoil ends up 0.97 cent at 52.22 cents per pound. CBOT Dec soymeal slips 20c to $348 per hundredweight. (Source: CME)
New Planting Rule Improves Palm Industry Image - Unilever (Source: CME)
A proposed new planting rule by the Roundtable on Sustainable Palm oil, that requires oil palm growers to get approvals from local communities, will improve the industry's image, a company executive at Unilever NV said. The industry has previously faced criticism by environmental groups that it cleared forest lands to cultivate oil palms. The new planting procedure--proposed by environmental groups and set to be adopted at the upcoming Roundtable conference in Jakarta next week--requires oil palm growers to prepare correct regulatory permits, documents that identify areas that fall under primary forest, or peat soils, and for new oil palm plantings from Jan. 1, 2010. Many growers say they are burdened with too many RSPO requirements and the new planting procedure would slow oil palm expansion particularly in Indonesia, leading to higher prices in the longer term as global demand increases.
"The planting rule is the only way to make sure planters adhere to RSPO principles and requirements," the Netherlands-based Jan Kees Vis, global director for sustainable sourcing development at Unilever, said. Jan Kees, also president at RSPO, said the planting rule would also put to rest deforestation charges made by environmental groups. The planting rule, if implemented, would also require growers to address all grievances with local communities before they commence operations on new areas. The RSPO, an industry consortium, was formed by the World Wildlife Fund and Unilever in 2004, which is adopting stringent and sustainable practices for palm-oil cultivation after palm oil producers in Malaysia and Indonesia were charged by environmental groups with cutting down forest trees and draining peat lands for oil palm cultivation.
The allegations led to blacklisting of some plantation firms by major food producers as they rushed to protect global brands by jumping on the sustainable bandwagon, demanding environ mentally friendly palm oil. Most palm oil producers have made that pledge to be fully certified by the RSPO in the next few years, but Jan Kees warned against a tendency to delay certification plans until demand picks up.
U.S. soy hits 25-month top on dollar, Fed push
SINGAPORE, Nov 5 (Reuters) - U.S. second-month soybean futures climbed to a 25-month high and wheat extended gains as funds flowed into commodities after the U.S. Federal Reserve's new stimulus plan boosted appetite for risk assets.
"There's a broad allocation for commodities at the moment," said Adam Davis, senior commodity analyst at Merricks Capital in Melbourne.
USDA confirms China rejected US corn shipment
WASHINGTON, Nov 4 (Reuters) - The U.S. Agriculture Department on Thursday confirmed that China has rejected a shipments of U.S. corn after it detected a genetically modified variety not yet approved in China.
"We understand that industry representatives are working directly with the Chinese on this matter. We continue to monitor the situation," a USDA spokeswoman said.
Argentina corn sowings seen higher-exchange
BUENOS AIRES, Nov 4 (Reuters) - Argentina's 2010/11 commercial-use corn area is seen rising to 3.15 million hectares from the previous forecast of 3.0 million hectares, the Buenos Aires Grains Exchange said on Thursday.
The exchange held its estimate for 2010/11 wheat production at a minimum of 12.1 million tonnes, and kept its forecast for 2010/11 soy area at 18.7 million hectares.
US corn supply seen falling to 15-year low
CHICAGO, Nov 4 (Reuters) - U.S. corn ending stocks will fall next year to their lowest level in 15 years, along with the stocks-to-use ratio, amid a shrinking crop and robust demand, a Reuters Poll of analysts showed.
A wet July and dry August has already lead the U.S. Agriculture Department to trim its corn yield estimate by 4 percent last month, and the analysts polled are expecting the USDA to trim its yield again on Tuesday at 8:30 a.m. EST (1330 GMT), when it releases its November crop production and supply/demand reports.
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