The Malaysian Insider :: Business

Renesas aims to sell chip plant, shed 12,000 jobs: Source

Sat, 26 May 2012 15:57:21 GMT

TOKYO, May 26 – Japanese chipmaker Renesas Electronics Corp plans to sell off loss-making operations and cut its payroll by at least 12,000, a source close to the matter said today, as the company battles high costs and nimbler foreign rivals. Sources also confirmed that Renesas, the world’s largest maker of microcontroller chips for cars, aims to ...

Canada’s RIM to cut at least 2000 jobs

Sat, 26 May 2012 15:21:46 GMT

TORONTO, May 26 – Research In Motion Ltd is preparing for a major restructuring beginning in the next couple of weeks that will see it eliminate at least 2,000 jobs worldwide, the Globe and Mail reported today, citing unnamed sources. The Canadian newspaper, citing several people close to the company, reported that the next round is layoffs is ...

Direct yuan-yen trading could start in June: Media

Sat, 26 May 2012 10:51:31 GMT

TOKYO, May 26 – Japan and China plan to start direct trading of the yen and yuan as early as June, aiming to make trade and financial transactions between the countries easier, Japanese media reported today. The step follows an agreement between the leaders of Asia’s two largest economies in December to promote direct trading of their currencies ...

IFC plans to invest in Malaysia’s Khazanah healthcare arm

Sat, 26 May 2012 09:37:33 GMT

KUALA LUMPUR, May 26 – International Financial Corp (IFC), a member of the World Bank Group, is planning to take part in the planned US$1.5 billion (RM4.73 billion) listing of Malaysia’s Integrated Healthcare Holdings (IHH) in a move to help validate IHH’s emerging markets strategy, according to IFC’s official website. The largest global ...

Asia’s richest man cleverly sidesteps possibility of family feud

Sat, 26 May 2012 08:48:51 GMT

HONG KONG, May 26 – Octogenarian Hong Kong billionaire Li Ka-shing mapped out a succession plan for one of Asia’s biggest family empires, ensuring a smoother transition for the Cheung Kong group than that of real estate rival Sun Hung Kai Properties. Li told investors that while he had no plans to retire, elder son Victor would eventually take ...

EU says China, US, Japan also have economic work to do

Sat, 26 May 2012 06:57:20 GMT

BRUSSELS, May 26 — The United States and Japan must tackle their tax issues and China must relax restrictions on the yuan, as they share responsibility with Europe for restoring global economic health, EU leaders said ahead of a June summit of the G20 leading economies. In a letter addressed to all 27 European Union nations, European Commission ...

Games giving ‘Brand Britain’ an Asian boost

Sat, 26 May 2012 04:04:53 GMT

LONDON, May 26 — The London Olympics are giving “brand Britain” a fillip in China and India, a survey indicated today, boosting the government’s ambition of attracting an extra £1 billion (RM4.9 billion) of inward investment and trade. Publicity surrounding the Games had resulted in nearly 80 per cent of those Chinese and Indians questioned saying ...

US data, Europe woes to set tone

Sat, 26 May 2012 00:58:54 GMT

NEW YORK, May 26 — Investors will grapple next week with major US economic reports and the looming possibility of a Greek exit from the euro zone, which is likely to keep dragging on equities for weeks to come. As contingency plans are made for Greece’s possible departure from the euro zone, investors may not get a clear picture until Greece holds ...

DRB-Hicom suspends Lotus Group boss

Sat, 26 May 2012 00:36:07 GMT

KUALA LUMPUR, May 26 — New Group Lotus owners DRB-Hicom Berhad has suspended chief executive Dany Bahar as part of measures to “facilitate” an investigation following complaints about his professional conduct. Group Lotus said in a statement yesterday that the suspension CEO Bahar followed an operational review and a complaint against Bahar made ...

Wall St, euro fall on fears of Greek euro zone exit

Sat, 26 May 2012 00:09:20 GMT

NEW YORK, May 26 — US stocks and the euro slipped yesterday as Spain’s deteriorating finances and a possible Greek exit from the euro overshadowed an upbeat report on US consumer confidence. Oil prices edged higher due to a lack of progress in talks with Iran over its disputed nuclear program and the rise in US consumer confidence. European ...

Spain region, Greek exit warnings rattle euro zone

Sat, 26 May 2012 00:04:03 GMT

BRUSSELS, May 26 — Central banks and companies risk making a grave error if they do not brace for a possible Greek exit from the euro zone, Belgium’s foreign minister said yesterday, rattling markets already alarmed by Spain’s deteriorating finances. Greek elections are scheduled for June 17 and could hasten the country’s departure from the ...

Facebook flop hurts small investors’ trust in stocks

Fri, 25 May 2012 23:59:53 GMT

NEW YORK, May 26 — Just when brokers thought Mom-and-Pop investors were getting excited about the stock market, along came Facebook. The 17 per cent plunge in Facebook’s shares since its ballyhooed debut last Friday, coupled with Nasdaq’s mishandling of opening day trading, is spooking the very investors who had seemed the most intrigued by the ...

French banks plan for Greek euro zone exit, say sources

Fri, 25 May 2012 15:22:39 GMT

PARIS, May 25 — French banks, which are among the lenders most exposed to Greece, have stepped up their efforts on contingency plans for the debt-laden country leaving the euro zone, sources familiar with the situation said. The heightened preparations by banks, including Credit Agricole (CAGR.PA), BNP Paribas (BNPP.PA) and Societe Generale ...

China counter-challenges US over subsidies at WTO

Fri, 25 May 2012 10:33:35 GMT

GENEVA, May 25 — China filed a complaint at the World Trade Organization (WTO) on Friday to challenge US tariffs charged on Chinese goods that the United States considers to be unfairly subsidised. The dispute, revolving around so-called countervailing duties, relates to 22 products with an annual export value to the United States of US$7.3 ...

Ringgit closes with little change against US dollar

Fri, 25 May 2012 10:18:08 GMT

KUALA LUMPUR, May 25 — The ringgit was little changed against the greenback at the close today on short covering activities amid bearish sentiment, dealers said. At 5pm, the ringgit was quoted at 3.1510/1550 to a US dollar compared with 3.1531/1561 at yesterday's closing. Dealers said the ringgit inched up on demand after recent losses although ...

Rubber prices close lower due to mild buying interest

Fri, 25 May 2012 10:14:47 GMT

KUALA LUMPUR, May 25 — Rubber prices in the local rubber market continued to trade lower today due to mild buying support, dealers said. They said the demand for commodities globally were hampered by continued wariness about the eurozone debt saga. "Despite the current tight rubber supply, local traders were still hesitant to take any major move ...

Japan eyes smaller nuclear role but no exit strategy

Fri, 25 May 2012 09:18:39 GMT

TOKYO, May 25 — Japan is leaning toward a policy of halving nuclear power's share of electricity supply from pre-Fukushima levels to about 15 per cent by 2030, but will likely stop short of pledging the long-term exit strategy that many voters favour, experts said. That would be a victory of sorts for a nuclear industry that has been under fire ...

EU worries keep euro near two-year lows, shares edge up

Fri, 25 May 2012 07:51:37 GMT

LONDON, May 25 — The euro wallowed near two-year lows early today while European shares edged up, as uncertainty over the fate of Greece coupled with this week’s disappointing euro-zone and Chinese economic data curbed any appetite for riskier assets. The euro was down 0.1 per cent at US$1.2540, but has lost 1.78 per cent this week after yesterday ...

Facebook fallout: Silicon Valley won’t snub Morgan Stanley

Fri, 25 May 2012 07:19:39 GMT

SAN FRANCISCO, May 25 — Silicon Valley isn’t quite ready to dump Morgan Stanley over the Facebook IPO fiasco. It could be said that playing a role in botching the world’s biggest tech initial public offering would be enough to kick its lead banker out of the club, or at least to the curb, but a tarnished image hasn’t necessarily dented Morgan ...

Asia private equity funds line up dollars for Myanmar

Fri, 25 May 2012 06:43:17 GMT

SINGAPORE, May 25 — Hong Kong’s Cube Capital and Marc Faber-backed Leopard Capital are among Asian private equity firms lining up nearly US$500 million (RM1.6 billion) aimed at Myanmar, hoping to tap into its rich natural resources and fill its infrastructure void, as sanctions on the former pariah state are lifted. After 50 years of military ...

Hong Leong cuts KL Kepong target price

Fri, 25 May 2012 03:39:25 GMT

KUALA LUMPUR, May 25 — Hong Leong Research cut its target price for Malaysia’s No.3 palm oil firm Kuala Lumpur Kepong Bhd (KLK) to RM20.72 from RM22.15 on weaker performance in its plantation and manufacturing units. In a research note today, Hong Leong said the 6.4 per cent target price cut was factored in after KLK reported lower-than-expected ...

Kenanga ups Dutch Lady to outperform

Fri, 25 May 2012 03:34:02 GMT

KUALA LUMPUR, May 25 — Kenanga raised its stock call on Dutch Lady Milk Industries Bhd to outperform from market perform after the dairy manufacturer reported an improvement in sales for its products. “We remain positive on the company’s prospect going ahead given its strong brand and market position,” the broker said in a research note ...

China’s CIC eyes up to US$2b stake in Alibaba, say sources

Fri, 25 May 2012 03:24:50 GMT

HONG KONG, May 25 — Sovereign wealth fund China Investment Corp (CIC) is in advanced talks to buy an up to US$2 billion (RM6.3 billion) stake in Alibaba Group, sources told Reuters, as the Chinese e-commerce powerhouse looks to secure the last of the funding it needs to buy back part of its stake from Yahoo Inc. The involvement of CIC, China’s ...

Analyst call May 25

Fri, 25 May 2012 02:50:15 GMT

KUALA LUMPUR, May 25 — This is a selection of morning calls by local research houses for the day. HwangDBS Vickers Market Preview Our Malaysian bourse could struggle to sustain its recovery momentum. The benchmark index — after rebounding 15.8-point or 1.0 per cent this week on thin trading volume — will probably show a downward bias as it faces ...

Morgan Stanley adjusting some Facebook trades

Fri, 25 May 2012 01:20:25 GMT

NEW YORK, May 25 — Morgan Stanley will adjust thousands of trades to ensure outstanding limit orders to sell will be filled at no more than US$42.99 a share for Facebook stock from last Friday’s botched initial public offering, the firm told its brokers yesterday, according to several who listened to the call. Morgan Stanley said that limit orders ...

Facebook market makers’ losses total at least US$100m

Fri, 25 May 2012 01:04:42 GMT

NEW YORK, May 25 — Claims by four of Wall Street’s main market makers against Nasdaq over Facebook’s botched IPO are likely to exceed US$100 million (RM313.7 million), as they and other traders continue to deal with thousands of problems with customer orders. A technical glitch delayed the social networking company’s market debut by 30 minutes on ...

Tech pressures Nasdaq in volatile trading

Fri, 25 May 2012 00:21:11 GMT

NEW YORK, May 25 — Stocks ended slightly higher in a third session marked by late-day swings, but the Nasdaq fell after NetApp gave a weak revenue forecast, casting doubt on the outlook for tech spending. Major indices were lower for much of the session, as investors found little reason to buy following three days of gains. In addition, economic ...

US economy trudges along as others falter

Thu, 24 May 2012 16:02:12 GMT

WASHINGTON, May 24 – The number of Americans filing new claims for jobless benefits dipped last week and factory activity grew but at a slower pace in May, indicating the economy was plodding along despite growing headwinds from Europe. Though today’s economic reports were a bit lacklustre, they offered no signs of deterioration in the world’s ...

Short interest in Facebook shares rises

Thu, 24 May 2012 13:44:03 GMT

NEW YORK, May 24 — Demand to borrow Facebook Inc shares for shorting has increased, with nearly 8 percent of the stock out on loan, according to financial data company Data Explorers. About 70 percent of the shares available for lending are out on loan as demand to borrow, and possibly short the stock, strengthens, Data Explorers said on ...

German economy succumbs to euro gloom

Thu, 24 May 2012 13:29:41 GMT

BERLIN, May 24 – German business sentiment collapsed in May and the manufacturing sector shrank as turmoil in the euro zone unsettled firms, threatening to end the immunity of Europe’s largest economy to the troubles surrounding it. Germany’s “Teflon economy” has so far avoided the fate of its European peers thanks to strong exports to other parts ...

SapuraKencana secures RM1.3b contract extension

Thu, 24 May 2012 13:22:35 GMT

KUALA LUMPUR, May 24 — SapuraKencana Petroleum Bhd has secured a RM1.3 billion contract extension for the transportation and installation of offshore oil and gas facilities and structures for 11 Petronas production-sharing contractors. Its wholly-owned subsidiary, TL Offshore Sdn Bhd, received a confirmation from Petronas, which has exercised its ...

Genting gets SC nod for RM2b bond issue

Thu, 24 May 2012 12:19:04 GMT

KUALA LUMPUR, May 24 — Genting Capital Bhd, a unit of gaming group Genting Bhd, has obtained the Securities Commission's approval for a 20-year, RM2 billion (US$636 million) bond programme to fund operations. The bonds, in the form of medium-term notes guaranteed by Genting, has been assigned a long-term rating of AAA(s) by Malaysian rating agency ...

CIMB posts RM1.3b Q1 profit

Thu, 24 May 2012 12:01:23 GMT

KUALA LUMPUR, May 24 — CIMB Group Holdings Bhd has posted RM1.341 billion pre-tax profit for its first financial quarter ended March 31, 2012, up 8.8 per cent from RM1.232 billion in the same quarter last year. Revenue for the three months also rose 18.4 per cent to RM3.255 billion from RM2.75 billion. The second biggest bank in Malaysia said the ...

KLK posts lower pre-tax profit in Q2

Thu, 24 May 2012 10:54:56 GMT

KUALA LUMPUR, May 24 — Kuala Lumpur Kepong Bhd's (KLK) pre-tax profit for the second quarter ended March 31, 2012, fell to RM311.6 million from RM503.83 million in the same quarter last year. However, revenue edged up to RM2.62 billion for the period from RM2.37 billion previously, KLK said in a filing to Bursa Malaysia today. "The higher revenue ...

Global economy: Euro zone slump deepens, China falters

Thu, 24 May 2012 10:35:52 GMT

LONDON, May 24 — The shadows being cast over the global economy darkened this month as the euro zone’s private sector declined further and China’s once-booming factories faltered, business surveys showed today. Worryingly for European policymakers, a downturn that started in smaller euro zone periphery members is now taking root in the core ...

UK recession deepens as euro zone woes mount

Thu, 24 May 2012 10:09:11 GMT

LONDON, May 24 — Britain fell deeper into recession than initially thought in the first quarter of 2012 due to a slump in construction output, raising the likelihood that the Bank of England will opt to inject more stimulus to protect the economy from the euro zone debt crisis. Britain is in its second recession since the 2007-2008 financial ...

Shares, euro fall as Europe’s economy worsens

Thu, 24 May 2012 09:00:31 GMT

LONDON, May 24 — The euro hit a fresh 22-month low and European shares gave up early gains today after data showed Europe’s economic slump has worsened, as talk of a Greek exit and a lack of progress in tackling the debt crisis hits business confidence. Germany’s manufacturing sector shrank at the fastest rate in three years in May, the Markit ...

As rivals falter, Lenovo has emerging market edge

Thu, 24 May 2012 08:12:06 GMT

HONG KONG, May 24 — With home turf advantage in the world’s biggest computer market and a foothold in major emerging economies, China’s Lenovo Group is looking to turn market share into profit, heaping more pressure on US rivals Hewlett-Packard Co and Dell Inc. Concern that global tech spending, particularly in the developed world, is weakening ...

Europe shares, euro recover but Greece no nearer solution

Thu, 24 May 2012 07:34:43 GMT

LONDON, May 24 — The euro hovered above a 22-month low and European shares saw a fragile recovery, as investors braced for data that could reveal the damage wrought on the region’s economy by prospects of a Greek exit and a lack of progress in tackling the debt crisis. A meeting of European Union leaders, who have been advised by senior officials ...

Indonesia set to cap bank owners’ stakes

Thu, 24 May 2012 07:29:56 GMT

SINGAPORE, May 24 — Indonesia’s central bank is set to limit the maximum stake a single shareholder can take in the country’s banks to below 50 per cent, a move that could scupper Singapore-based DBS Group’s US$7.3 billion (RM21.9 billion) bid for Bank Danamon. DBS’s acquisition plans were thrown into limbo late last month when the Indonesian ...

HK, China shares drop; China flash PMI fails to cheer

Thu, 24 May 2012 06:05:43 GMT

HONG KONG, May 24 — Hong Kong and China shares fell today, with underwhelming China data doing little to tempt investors back to a market that has been characterized by low turnover and elevated short-selling interest. Europe’s debt problems also weighed, with signs that the region’s leaders were unable to deliver meaningful measures to resolve ...

Maybank Q1 net profit up 18.4pc

Thu, 24 May 2012 06:00:54 GMT

KUALA LUMPUR, May 24 — Malaysia's largest lender Malayan Banking Bhd (Maybank) today posted an 18.4 per cent increase in first-quarter net profit, lifted by a stronger loan business and its Islamic banking operations.The bank posted a net profit of RM1.35 billion in the quarter ended March 31, 2012 compared with RM1.14 billion in the same quarter ...

Mustapa: China, Europe slowdown not cutting us deeply

Thu, 24 May 2012 05:05:55 GMT

KUALA LUMPUR, May 24 — Malaysia’s trade with China has not been badly affected by the economic slowdown in China and Europe, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed. “Trade (overall) will still grow between five and six per cent per annum this year. That is our forecast for the whole year. “If it (trade) is up and ...

China factories seen to falter in May

Thu, 24 May 2012 04:26:50 GMT

BEIJING, May 24 — China’s factories faltered in May as export orders fell to two month lows, a private sector survey showed today, suggesting surprise weakness in April’s hard economic data persists even as policymakers seek to shore up growth. The HSBC Flash Purchasing Managers Index, the earliest indicator of China’s industrial sector, retreated ...

Analyst calls for May 24

Thu, 24 May 2012 02:19:16 GMT

KUALA LUMPUR, May 24 — This is a selection of morning calls by local research houses for the day. From RHB Research MPHB MPHB is proposing to demerge its gaming and other businesses to create two separate and independent listed entities, i.e. MPHB, which will hold the gaming business, and an SPV which will hold the financial services businesses ...

Asia shares edge up but vulnerable on Greece risks

Thu, 24 May 2012 01:04:02 GMT

TOKYO, May 24 — Asian shares were steady but remained vulnerable today amid signs European leaders were unable to deliver meaningful measures to resolve the region’s deepening debt crisis. European Union leaders, at an informal meeting yesterday, have been advised by senior officials to prepare contingency plans in case Greece quits the single ...

HP to cut 27,000 jobs, profit slides 31pc

Wed, 23 May 2012 23:07:39 GMT

SAN FRANCISCO, May 24 — Hewlett Packard Co said yesterday it would lay off roughly 27,000 employees or about eight per cent of its workforce to jumpstart growth, and its shares rose 11 per cent. The company said the layoffs would be made mainly through early retirement and would generate annual savings of US$3 billion (RM9 billion) to US$3.5 ...

EU urges Greece to stay, but plans for possible exit

Wed, 23 May 2012 23:03:09 GMT

BRUSSELS, May 24 — European Union leaders, advised by senior officials to prepare contingency plans in case Greece decides to quit the single currency, urged the country to stay the course on austerity and complete the reforms demanded under its bailout programme. After nearly six hours of talks held during an informal dinner, leaders said they ...

Facebook exec ducks questions about IPO debacle

Wed, 23 May 2012 22:57:25 GMT

BOSTON, May 24 — Facebook chief operating officer Sheryl Sandberg spoke to Harvard University students in her first public appearance since the company’s disappointing initial public offering, but refrained from addressing the controversy around its messy, glitch-plagued debut. Instead, Sandberg urged students graduating this week from Harvard’s ...

American Eagle profit beats on repeat business

Wed, 23 May 2012 15:15:18 GMT

NEW YORK, May 23 – American Eagle Outfitters Inc’s quarterly profit beat Wall Street estimates, as the retailer drew more repeat customers, had fewer discounts and outperformed rivals. The quarter is typically a clearance season as retailers try to unload unsold items from the holidays. This year, however, many clothing chains sold closer to full ...