The Malaysian Insider :: Business

Germany’s Merkel visits Pope, urges tougher market controls

Sat, 18 May 2013 12:52:44 GMT

VATICAN CITY, May 18 — German Chancellor Angela Merkel met Pope Francis on Saturday and, apparently responding to his criticism of a heartless "dictatorship of the economy", called for stronger regulation of financial markets. On Thursday, Francis appealed in a speech for world financial reform, saying the global economic crisis had made life ...

Abdul Wahid to resign as Maybank president & CEO on June 4

Sat, 18 May 2013 11:54:46 GMT

JOHOR BAHARU, May 18 — Datuk Seri Abdul Wahid Omar, recently appointed as Minister in the Prime Minister's Department, will resign as President and Chief Executive Officer of Malayan Banking (Maybank) Bhd on June 4. He will take his oath of office as Senator on June 5 in order to assume his new portfolio. "Let me complete my duties at Maybank ...

EU cites Chinese Telecoms Huawei and ZTE for trade violations

Sat, 18 May 2013 07:37:02 GMT

NEW YORK, May 18 — Europe’s top trade official for the first time late on Friday officially cited Chinese mobile telecommunications equipment makers Huawei and ZTE Corp for violating anti-dumping and anti-subsidy guidelines. European Union Trade Commissioner Karel De Gucht said he was prepared to launch a formal investigation into ...

Indonesia offers 21 oil and gas blocks in tender

Sat, 18 May 2013 04:28:15 GMT

JAKARTA, May 18 — Indonesia opened a rights tender for 21 oil and gas exploration blocks today, two of which are for unconventional gas concessions on the islands of Borneo and Sumatra, as Southeast Asia’s largest economy moves to shore up its energy security. Besides two shale gas blocks, the tender includes 17 offshore blocks that are mostly in ...

China April housing inflation quickens

Sat, 18 May 2013 04:03:25 GMT

BEIJING, May 18 — China’s housing inflation quickened in April, marking the fourth consecutive year-on-year rise and challenging policymakers who are trying to cool record home prices while supporting economic expansion. Average new home prices rose 4.9 per cent last month from a year ago, after a year-on-year increase of 3.6 per cent in March, ...

Tech, labour brandish duelling studies in US immigration fight

Sat, 18 May 2013 01:09:02 GMT

WASHINGTON, May 18 — The technology industry and organised labour are locked in a fight that threatens to complicate the US Senate’s immigration bill. At the heart of the debate is whether there is a shortage of Americans with the math and science skills needed for work at technology firms like Facebook Inc, Google Inc and Microsoft Corp. Labour ...

Talk gets old as rally sails along

Sat, 18 May 2013 00:18:56 GMT

NEW YORK, May 18 — With the broad S&P 500 Index gliding once again into uncharted territory and posting four straight weeks of gains, the talk of Wall Street’s rally inevitably hitting a ceiling is starting to get old. Concerns about a technical correction have been a hot topic for weeks, especially as the rally accelerated in May — the S&P 500 ...

Investor group calls on SEC to review change in JP Morgan

Sat, 18 May 2013 00:14:59 GMT

NEW YORK, May 18 — Pension and endowment managers today called on US regulators to review the rules for shareholder voting after a firm collecting ballots for JPMorgan Chase & Co cut off the bank’s opponents from polling information. The Council of Institutional Investors, which represents managers of pensions, endowments, and foundations with ...

Brussels, Berlin lukewarm on Hollande’s euro zone vision

Fri, 17 May 2013 14:00:56 GMT

BRUSSELS, May 17 — European officials gave a lukewarm response to French President Francois Hollande's sweeping proposals for deeper euro zone integration today, noting that many of his ideas were already in circulation. In a 2”1/2”hour news conference at the Elysee Palace on Thursday, Hollande set out plans for an “economic government” for the ...

Italy PM Letta seeks to smooth property tax standoff

Fri, 17 May 2013 13:25:32 GMT

ROME, May 17 — Italian Prime Minister Enrico Letta promised a wide reform of property tax today, addressing one of the main issues dividing his coalition government, but gave no details on where he would find the billions of euros to pay for it. He confirmed pledges to suspend the widely hated IMU tax on principal residences brought in by his ...

Petra Energy reports lower Q1 earnings

Fri, 17 May 2013 12:58:19 GMT

KUALA LUMPUR, May 17 — Petra Energy Bhd registered a lower pre-tax profit of RM3.619 million for its first quarter ended March 31, 2013, from the RM9.712 million posted in the same period last year. Revenue for the three-month period also fell to RM92.38 million when compared with RM131.252 million, previously. In a filing to Bursa Malaysia ...

MASkargo’s business plan gets MAS’ support

Fri, 17 May 2013 12:54:48 GMT

SUBANG, May 17 — National carrier Malaysia Airlines System (MAS) is fully supportive of its subsidiary MASkargo Sdn Bhd’s initiatives in carrying out its three-thrust business plan this year. MAS group chief executive officer Ahmad Jauhari Yahya said the three thrusts are investing in emerging and niche markets, providing top-quality customer ...

Japan PM sets targets in latest growth strategy tranche

Fri, 17 May 2013 10:25:03 GMT

TOKYO, May 17 — The latest tranche of Japan's growth strategy will aim to triple infrastructure exports and double farm exports by 2020, as well as boost private investment, Prime Minister Shinzo Abe said today. The government will set a target for domestic private-sector investment of 70 trillion yen (RM2.06 trillion) annually, Abe said in a ...

Indonesia’s Pertamina looks to Talisman for help in 1st shale gas block

Fri, 17 May 2013 10:12:15 GMT

JAKARTA, May 17 — State energy firm Pertamina is planning to tap into the expertise of Canada's Talisman Energy Inc as it embarks on Indonesia's first shale gas extraction project, a company official said today. Pertamina said this week it would spend US$28 million (RM84 million) over the next three years on exploration and drilling in the ...

Beyond the reach of banks, Indians targeted by outlaw fund scams

Fri, 17 May 2013 08:56:34 GMT

MUMBAI, May 17 — Dalia Ghosh, a 28-year-old nurse in the eastern Indian city of Kolkata, invested her savings in an unlicensed fund run by media conglomerate Saradha Group last year, hoping to start her own clothes business. But Saradha went bust in April, wiping out as much as US$3.7 billion (RM11.1 billion) in deposits from mostly low-income ...

After Google, Amazon to be grilled on UK tax presence

Fri, 17 May 2013 08:46:57 GMT

LONDON, May 17 — Internet retailer Amazon.com Inc. will be called back to the British parliament to clarify how its activities in the UK justify its low corporate income tax bill, two lawmakers told Reuters. Amazon will follow search giant Google, which attended another grilling by parliament's Public Affairs Committee (PAC) over its tax affairs ...

China ups stakes in Australia power firms as Singapore retreats

Fri, 17 May 2013 08:39:21 GMT

SINGAPORE, May 17 — State Grid Corp of China (SGCC), the world's largest state utility, has agreed to buy large stakes in Australian power companies from a unit of Singapore's Temasek in a deal that could be worth over A$5 billion (RM14.9 billion), as it searches overseas for higher-yielding assets. State Grid will buy 19.9 per cent of ...

Gold falls further in longest losing streak in four years

Fri, 17 May 2013 06:27:29 GMT

SINGAPORE, May 17 — Gold fell today for a seventh straight session, in its longest losing streak since March 2009, as the dollar strengthened and investors cut exposure to the precious metal, fearing further drops and choosing equities instead. Gold has lost nearly 6 per cent of its value in the six sessions through yesterday as stocks gained on ...

ECB eyes supervisory role to squeeze weak banks

Fri, 17 May 2013 06:23:02 GMT

BRUSSELS, May 17 — The European Central Bank could use its new supervisory role from next year to single out weak banks and make it harder for them to get its financial support, people familiar with the matter say. Such a hardening of approach would keep ECB funding flowing to Europe’s most important lenders but compel laggards to beef up their ...

Bursa stays upbeat at mid-afternoon

Fri, 17 May 2013 03:51:30 GMT

KUALA LUMPUR, May 17 — Share prices on Bursa Malaysia remained higher at mid-afternoon today, lifted by gains in Genting-related counters and other blue chips, dealers said. At 3 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,769.44 points, up 2.72 points from yesterday’s close. A total of 1.227 billion shares worth RM1.023 billion were ...

SIA shares fall on Q4 earnings, tough outlook

Fri, 17 May 2013 02:05:56 GMT

SINGAPORE, May 17 — Shares of Singapore Airlines Ltd (SIA) fell as much as 3 per cent after Asia’s second-largest carrier reported weaker-than-expected full-year results and warned of a tough outlook amid competition from Gulf carriers and low-cost regional rivals. SIA shares fell as low as S$11.11 (RM27) today, the weakest level since May 7. SIA ...

UMW may raise RM3b in energy unit IPO

Fri, 17 May 2013 02:01:50 GMT

KUALA LUMPUR, May 17 — UMW Holdings Bhd, Malaysia’s industrial-to-automotive conglomerate, is planning to sell 39 per cent of its oil and gas unit in an IPO, a deal that some bankers say could raise up to US$1 billion (RM3 billion). The listing comes amid a pick-up in IPOs and secondary share offerings in Asia and could be one of the largest ...

Asian shares mixed, dollar firmer on Fed remarks

Fri, 17 May 2013 01:35:46 GMT

SINGAPORE, May 17 — The dollar held firm near a 10-month high versus a basket of currencies today after a US Federal Reserve official said the central bank may begin to taper its asset buying this summer, while Asian shares were mixed. US equities had sagged yesterday after John Williams, president of the Federal Reserve Bank of San Francisco, ...

Analyst calls for May 17

Fri, 17 May 2013 01:26:00 GMT

KUALA LUMPUR, May 17 ― This is a selection of morning calls by local research houses for the day. From RHB Research Axiata Overall, we expect Axiata’s 1Q13 earnings to decline in the mid-single digit range. While we expect low single-digit earnings growth from Celcom, XL’s poor 1Q13 (-43.4 per cent year-on-year) will drag down Axiata’s overall ...

Wall St slips after Fed comments, but Cisco surges

Thu, 16 May 2013 23:01:28 GMT

NEW YORK, May 17 — US stocks fell yesterday, with the downturn accelerating late in the day after a Federal Reserve official said the central bank could begin easing up on its monetary stimulus this summer. The three major US stock indexes had earlier traded in a tight range, supported by a gain of more than 12 per cent in Cisco Systems shares and ...

Dell’s profit dives as billionaire battle rages on

Thu, 16 May 2013 22:57:56 GMT

SAN FRANCISCO, May 17 — Dell Inc, the subject of a takeover battle between activist investor Carl Icahn and the company’s billionaire founder, reported a 79 per cent slide in profit as personal computer sales continued to shrink. The disappointing results lend weight to Michael Dell’s effort. The man who started Dell from a college dorm room wants ...

European shares dented by earnings, weak US data

Thu, 16 May 2013 15:39:11 GMT

LONDON, May 16 — European shares ended a touch lower on Thursday, knocked by downbeat earnings news and disappointing US data, although some analysts expected the market to resume its grind higher. The FTSEurofirst 300 provisionally closed down 0.1 per cent at 1,244.78, with heavyweight Swiss insurer Zurich a big faller, down 3.3 per cent, after ...

Wall St dips after data, Cisco curbs decline

Thu, 16 May 2013 14:26:35 GMT

NEW YORK, May 16 — US stocks were little changed on Thursday after softer-than-expected data on the manufacturing sector and labor market, but gains in Cisco helped temper declines. Weekly initial jobless claims jumped by 32,000 to a seasonally adjusted 360,000, the biggest jump since November and above expectations. Housing starts were below ...

Global luxury goods market to cool in 2013, says Bain

Thu, 16 May 2013 13:31:55 GMT

PARIS, May 16 — Growth in sales of luxury goods is expected to ease slightly this year, hit by subdued spending in Europe and slower growth in China, consultancy Bain & Co said in a study on Thursday. Bain, whose forecasts are closely watched by the industry, sees luxury goods growth cooling worldwide to 4 to 5 per cent in 2013 from 5 per cent ...

Weak US data sends dollar lower, Wall St seen down

Thu, 16 May 2013 13:24:23 GMT

LONDON, May 16 — Surprisingly weak US housing and labour market data erased the dollar's gains against the euro and the yen on Thursday and pointed to a lower start on Wall Street. The number of Americans filing new claims for unemployment benefits climbed last week at the fastest pace in six months, a worrisome sign for the economy which has been ...

Europe banks hesitate to join rush for new share capital

Thu, 16 May 2013 10:36:12 GMT

LONDON, May 16 — A wave of investor demand that has allowed Deutsche Bank and two other lenders to raise six billion euros (RM23.26 billion)in new share capital in the past month is unlikely to prompt other European banks to go to their shareholders for more cash. More than four years after the financial crisis began, many are hesitating to take ...

Singapore Airlines profit below estimates, flags weak outlook

Thu, 16 May 2013 10:30:39 GMT

SINGAPORE, May 16 — Singapore Airlines Ltd , which is expanding in the low-cost segment, reported a weaker-than-expected rise of nearly 13 percent in full-year net income and said it was cutting capacity between April and June in a sluggish market. Asia's second-biggest airline, which has a market value of $11 billion, said net income rose to ...

Brent weakens on stronger dollar, weak economies

Thu, 16 May 2013 09:42:35 GMT

LONDON, May 16 — Brent oil futures slipped towards US$103 (RM310.60) a barrel on Thursday after a sharper-than-expected drop in US factory output muddied the outlook for demand and a stronger dollar added downward pressure. Brent fell 62 cents to US$103.06 a barrel by 0857 GMT, after rising on Wednesday by US$1.08, the most in dollar terms since ...

April motor vehicle sales rise to 52,489 units

Thu, 16 May 2013 09:00:07 GMT

KUALA LUMPUR, May 16 — Sales of passenger and commercial vehicles in April this year increased to 52,489 units from 47,774 units in April last year, according to the Malaysian Automotive Association (MAA). In a statement today, MAA said the passenger vehicle segment recorded higher sales of 45,564 units compared with 41,433 units last year, ...

Petronas gas allocates five-year capex of RM8.1b

Thu, 16 May 2013 08:57:07 GMT

KUALA LUMPUR, May 16 — Petronas Gas Bhd has committed to allocating a capital expenditure (capex) of RM8.1 billion for the next five years, mainly to fund its regasification terminals in Lahad Datu and Pengerang. Chairman Datuk Anuar Ahmad said the capex, to be utilised from end-2012, will be allocated from its parent Petronas Bhd's total group ...

International forum of insurance guarantee schemes launched

Thu, 16 May 2013 08:51:59 GMT

KUALA LUMPUR, May 16 — The Malaysian Deposit Insurance Corporation (PIDM) has launched the International Forum of Insurance Guarantee Schemes (IFIGS) to promote international cooperation between insurance guarantee schemes and other stakeholder organisations that participate in the development of policy owner protection schemes. IFIGS was ...

CIMB boss denies talks with San Miguel abandoned

Thu, 16 May 2013 07:06:12 GMT

KUALA LUMPUR, May 16 — CIMB group chief executive Datuk Seri Nazir Razak said the negotiations between the bank and San Miguel Corp on the proposed acquisition of a stake in Bank of Commerce (BoC) in the Philippines are expected to be finalised in less than a month. “We are still in final negotiations with San Miguel on that transaction and the ...

Merkel ally warns Italy and France to work harder, faster

Thu, 16 May 2013 06:32:21 GMT

BERLIN, May 16 — Italy and France need to work harder and faster to resolve their structural problems, a senior ally of German Chancellor Angela Merkel said in a newspaper interview published today. Michael Meister, deputy parliamentary floor leader in Merkel’s Christian Democrats, told the Neue Osnabruecker Zeitung newspaper that the European ...

Struggling SIA fights back to boost growth

Thu, 16 May 2013 02:54:31 GMT

SINGAPORE, May 16 — Singapore Airlines Ltd , caught between the rapid emergence of Gulf carriers and low cost Asian rivals, is attempting a big strategy overhaul to revive growth, pushing into the low-cost segment and expanding its regional network. State-backed Emirates Airline, Etihad Airways and Qatar Airways are stitching deals, while Gulf ...

KL shares stay depressed at mid-afternoon

Thu, 16 May 2013 01:47:15 GMT

KUALA LUMPUR, May 16 — Share prices on Bursa Malaysia remained lower at mid-afternoon today, tracking losses in key heavyweights, dealers said. At 3 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,768.73 points, shedding 14.30 points from yesterday's close. A total of 1.561 billion shares worth RM1.257 billion were traded. Losers outpaced ...

Analyst calls for May 16

Thu, 16 May 2013 01:35:28 GMT

KUALA LUMPUR, May 16 ― This is a selection of morning calls by local research houses for the day. From RHB Research Multi-Purpose Holdings We take a look at the implications on MPHB’s valuation upon completion of the proposed listing of MPHB Capital now that all the details have been finalized. Our calculations indicate that MPHB Capital could ...

Upbeat Japan GDP brings some cheer, but Nikkei misses out

Thu, 16 May 2013 00:45:29 GMT

SYDNEY, May 16 — Some stock markets across Asia edged up today after solid growth data from Japan improved sentiment although Tokyo’s Nikkei lagged, while worries about a prolonged recession in the euro zone kept the common currency under pressure. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3 per cent, with mainland ...

Euro zone sinks into longest ever recession

Wed, 15 May 2013 23:01:52 GMT

BRUSSELS, May 16 — Germany’s economy crept back into growth at the start of the year but not by enough to stop the euro zone from contracting for a sixth straight quarter, and France slid into recession. Falling output across the bloc meant the 17-nation economy is in its longest recession since records began in 1995. It shrank 0.2 per cent in the ...

S&P 500 again at record highs, Google jumps

Wed, 15 May 2013 22:56:16 GMT

NEW YORK, May 16 — US stocks rose yesterday, with the Dow and S&P 500 hitting new all-time highs in a broad market rally as the recent upward momentum persisted. The Nasdaq also hit its highest level since November 2000 although gains were limited by a steep decline in Apple. Shares of the tech giant sold off in late afternoon trading after ...

Malaysia GDP slows to 4.1 pct y/y in Q1, misses forecast

Wed, 15 May 2013 10:36:30 GMT

KUALA LUMPUR, May 15 — Malaysia’s economy grew 4.1 per cent in the first quarter of 2013, its slowest pace in more than three years, missing expectations as weak exports weighed on the trade-dependent nation. The economy had expanded a surprisingly strong revised 6.5 per cent year-on-year in the fourth quarter last year, powering full-year growth ...

Malaysian economy slows in Q1 on weak exports

Wed, 15 May 2013 10:36:13 GMT

KUALA LUMPUR, May 15 — Malaysia’s economy grew 4.1 per cent in the first quarter of 2013, its slowest pace in more than three years, missing expectations as weak exports weighed on the trade-dependent nation.It was the slowest growth since the third quarter of 2009, when the economy contracted 1.1 per cent, but the central bank said today it still ...

Ringgit closes lower on weaker demand

Wed, 15 May 2013 10:30:25 GMT

KUALA LUMPUR, May 15 — The ringgit ended lower against the US dollar at close today on weak demand, dealers said. At 5pm, the local unit was quoted at 3.0005/0035 to the greenback compared to yesterday’s close of 2.9880/9910. A dealer said the US was showing signs of a recovery, underpinning expectations that the Federal Reserve may wind down its ...

Short-term rates close stable on Bank Negara’s intervention

Wed, 15 May 2013 10:28:11 GMT

KUALA LUMPUR, May 15 — Short-term rates closed stable today as Bank Negara Malaysia intervened in the money market to absorb excess liquidity from the financial system. The liquidity surplus in the conventional operations fell to RM14.561 billion from RM23.72 billion estimated earlier while the excess in the Islamic system declined to RM3.36 ...

UK banks avoid investigation by competition authority

Wed, 15 May 2013 10:19:21 GMT

LONDON, May 15 — Britain’s biggest banks received a boost today when the consumer watchdog decided against recommending that the market for personal current accounts be investigated by the competition regulator. The Office of Fair Trading said it would not refer the industry to the Competition Commission because measures being introduced later ...

Indonesia’ has US$6.6 billion deficit in Q1 balance of payments

Wed, 15 May 2013 09:57:43 GMT

JAKARTA, May 15 — Indonesia had a balance of payments deficit of US$6.6 billion (RM19 billion) in the first three months of this year, due to weak global demand coupled with low investment, the central bank said today. In October-December 2012, there was a balance of payments surplus of US$3.2 billion. Bank Indonesia has revised the surplus for ...