<![CDATA[Malay Mail - Money]]> https://www.malaymail.com/feed/rss/money Money en Malay Mail Copyright 2024 Malay Mail Fri, 29 Mar 2024 21:17:21 +0800 <![CDATA[Ringgit ends higher on improving demand]]> https://www.malaymail.com/news/money/2024/03/29/ringgit-ends-higher-on-improving-demand/126234 https://www.malaymail.com/news/money/2024/03/29/ringgit-ends-higher-on-improving-demand/126234 Malay Mail

KUALA LUMPUR, March 29 — The ringgit ended the day higher against the US dollar on improving domestic demand following the recent selloff, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the local currency rebounded amid a firmer greenback ahead of the United States (US) Personal Consumption Expenditures (PCE) inflation data to be unveiled later tonight.

At 6 =pm, the ringgit rose to 4.7215/7280 against the greenback from Wednesday’s close of 4.7320/7370.

He told Bernama that the US PCE price index for February will be closely monitored when the US Bureau of Economic Analysis publishes the report tonight.

In January, the PCE price index moderated to 2.4 per cent year-on-year from 2.6 per cent in the previous month while consensus estimates showed that most economists are looking at 2.5 per cent for February.

The US Federal Reserve has maintained its PCE forecast during its meeting last month at 2.4 per cent for 2024.

“The ringgit has been oscillating between RM4.7242 and RM4.7390 against the US dollar today as risk assets such as equities were gaining momentum and set to close at a decent level for the first quarter of the year,” he said.

At the close, the ringgit was traded firmer against a basket of major currencies.

It appreciated against the euro to 5.0907/0977 from 5.1233/1287 at Wednesday’s close and strengthened vis-a-vis the British pound to 5.9548/9630 from 5.9742/9805 previously.

The local note was also firmer versus the Japanese yen at 3.1194/1241 from 3.1261/1298 on Wednesday.

The ringgit was also higher against Asean currencies.

It rose versus the Thai baht to 12.9712/12.9983 from 12.9925/13.0130 on Wednesday and was also higher vis-a-vis the Indonesian rupiah at 297.7/298.2 compared to 298.3/298.8 previously.

It improved against the Singapore dollar to 3.4987/5040 from 3.5112/5151 at the last close and increased versus the Philippine peso to 8.40/8.42 from 8.41/8.43. — Bernama

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Fri, 29 Mar 2024 19:22:39 +0800 ringgit vs us dollar
<![CDATA[Bursa Malaysia ends higher on bargain hunting]]> https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-ends-higher-on-bargain-hunting/126226 https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-ends-higher-on-bargain-hunting/126226 Malay Mail

KUALA LUMPUR, March 29 — Bursa Malaysia closed marginally higher today, hitting an intraday high as bargain-hunting activities emerged following a few lacklustre trading sessions earlier.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 5.47 points to 1,536.07 from Wednesday’s close of 1,530.60.

The benchmark index opened 1.51 points higher at 1,532.11 and moved between 1,532.03 and 1,542.00 throughout the day.

On the broader market, gainers outpaced losers 516 to 469, while 502 counters were unchanged, 833 untraded, and 55 others suspended.

Turnover narrowed to 3.06 billion units worth RM2.59 billion from 3.75 billion units worth RM3.10 billion on Wednesday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said investors are still staying cautious despite some improvement in market sentiment.

“Recognising that investors’ expectations fluctuate over time. We expect the benchmark index to remain in its sideways pattern for the time being until more clarity emerges regarding the anticipated United States interest rate cut.

“The FBM KLCI has remained in the consolidation phase over the past two weeks. Despite the ongoing deeper consolidation, the index has consistently remained above the 50-day Exponential Moving Averages (EMA),” he told Bernama.

As such, Thong maintains his view that the benchmark index is still consolidating with a slight positive bias, with expectations of it hovering around the 20-day EMA.

Among the heavyweights, Maybank bagged 4.0 sen to RM9.69, Public Bank added 1.0 sen to RM4.22, CIMB Group gained 9.0 sen to RM6.64, and Tenaga Nasional expanded 14 sen to RM11.38.

Meanwhile, Petronas Chemicals declined 8.0 sen to RM6.71.

As for the actives, Hong Seng Consolidated and Lambo Group were flat at 1.0 sen and 3.0 sen, respectively, MMAG Holdings expanded 1.5 sen to 19.0 sen, Southern Score Builders added 4.5 sen to 34.5 sen, while Ingenieur Gudang slipped 1.0 sen to 15.0 sen.

On the index board, the FBM Emas Index rose 45.61 points to 11,571.59, the FBMT 100 Index increased by 45.03 points to 11,217.57, and the FBM Emas Shariah Index gained 30.08 points to 11,643.52.

The FBM ACE Index advanced 54.33 points to 4,897.06, while the FBM 70 Index escalated by 85.93 points to 16,234.08.

Sector-wise, the Financial Services Index climbed 91.15 points to 17,273.27, the Industrial Products and Services Index slightly rose by 0.09 points to 179.63, and the Energy Index increased by 9.37 points to 952.36.

The Plantation Index dipped by 10.89 points to 7,287.67.

Meanwhile, the Main Market volume reduced to 1.89 billion units valued at RM2.33 billion from 2.19 billion units valued at RM2.75 billion on Wednesday.

Warrants turnover dipped to 282.04 million units worth RM30.29 million from 800.47 million units worth RM107.30 million on Wednesday.

The ACE Market volume expanded to 855.36 million shares worth RM223.79 million from 751.30 million shares worth RM238.38 million previously.

Consumer products and services counters accounted for 231.90 million shares traded on the Main Market, industrial products and services (431.67 million); construction (191.49 million); technology (287.68 million); SPAC (0.00 million); financial services (109.97 million); property (279.02 million); plantation (31.89 million); REITs (17.89 million); closed/fund (10,100); energy (127.78 million); healthcare (47.09 million); telecommunications and media (47.85 million); transportation and logistics (41.31 million); and utilities (43.45 million).

Bursa Malaysia Bhd and its subsidiaries were closed yesterday for Nuzul Al-Quran. — Bernama

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Fri, 29 Mar 2024 18:41:29 +0800 bursa malaysia
<![CDATA[Texas attorney general probes Boeing parts supplier]]> https://www.malaymail.com/news/money/2024/03/29/texas-attorney-general-probes-boeing-parts-supplier/126216 https://www.malaymail.com/news/money/2024/03/29/texas-attorney-general-probes-boeing-parts-supplier/126216 Malay Mail

WASHINGTON, March 29 — Texas’s attorney general has launched an investigation into Boeing supplier Spirit AeroSystems over “reoccurring issues” with some parts it provides to the US aviation giant, his office said yesterday.

Spirit AeroSystems manufacturers fuselages and other large airplane parts, including for Boeing’s 737 jet.

Boeing had a near-catastrophic incident in January, when a fuselage panel on a 737 MAX 9 Alaska Airlines jet blew off mid-flight.

Attorney General Ken Paxton’s office said in a statement that some 737 models had “apparent manufacturing defects” that have resulted in “numerous concerning or dangerous incidents.”

Spirit AeroSystems is being asked to produce “documents relevant to manufacturing defects in their products” as part of the investigation, which will also look into the company’s organization and management.

The probe announcement came just days after Boeing said some of its top executives are leaving the company, including CEO Dave Calhoun, who will depart at the end of the year.

“I will hold any company responsible if they fail to maintain the standards required by the law and will do everything in my power to ensure manufacturers take passenger safety seriously,” Paxton said, according to the statement.

Boeing has grappled with high-profile production problems and safety incidents involving its aircraft for more than a year. — AFP

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Fri, 29 Mar 2024 18:04:00 +0800 texas,Boeing,Spirit AeroSystems,probe
<![CDATA[Old Xi Jinping speech sparks China monetary easing speculation]]> https://www.malaymail.com/news/money/2024/03/29/old-xi-jinping-speech-sparks-china-monetary-easing-speculation/126215 https://www.malaymail.com/news/money/2024/03/29/old-xi-jinping-speech-sparks-china-monetary-easing-speculation/126215 Malay Mail

BEIJING, March 29 — A sentence from a months-old speech by Chinese President Xi Jinping has sparked speculation the central bank might start aggressively buying government bonds to support the economy, a stimulus measure China has long shunned.

But most analysts say the People’s Bank of China (PBOC) will stick with traditional tools rather than resorting to massive liquidity injections through “quantitative easing” (QE), as some major economies such as Japan and the United States have done.

Market expectations remain high for more stimulus to boost the world’s second-largest economy, which is showing tentative signs of momentum despite a long-running debt crisis in the property sector, which used to account for a quarter of China’s gross domestic product.

“The People’s Bank of China must slowly increase the trading of treasury bonds in its open market operations,” Xi told a major financial meeting in October in a speech that was not published at the time but was included in a book this month.

The Hong Kong-based South China Morning Post cited an excerpt of the speech yesterday from the book, triggering market talk about how to interpret Xi’s words against the backdrop of the PBOC’s reluctance to flood the system with liquidity due to fears of inflation and asset bubbles.

China’s blue-chip stock index bounced 0.5 per cent off one-month lows yesterday. Today, 10-year treasury bond futures rose the most in three weeks.

The speculation also reflects investor sensitivity to comments made by Xi, China’s president for 11 years and its most powerful ruler since Mao Zedong.

The PBOC did not immediately respond to a request for comment.

Liquidity ample, room to cut rates

Xi’s speech was “not buying government bonds in the primary market, therefore not an indication of QE”, said Morgan Stanley’s chief China economist, Robin Xing.

“In fact, in the same speech, Beijing made hawkish comments that the deleveraging process requires a tighter grip on money and credit supply, which we believe indicates continued preference for austerity to prevent misallocations,” Xing said in a note to investors.

The PBOC is not allowed to buy bonds directly from the central government. It last bought them in the secondary market in 2007.

Xi was “calling for replenishing the central bank’s monetary policy toolkit”, including expanding its options in open-market trading of government bonds to manage liquidity, said Tao Wang, head of Asia economics and chief China economist at UBS Investment Bank.

Guolian Securities economist Rocky Fan said the PBOC could buy treasury bonds while reducing reverse repurchases, replacing one with the other.

Among other traditional policy tools, PBOC Deputy Governor Xuan Changneng said last week that cutting commercial banks’ reserve requirement ratios, now averaging around 7 per cent after a 50-basis-point cut in January, would be an important way to inject liquidity.

Last month, the PBOC cut its five-year loan prime rate by 25 basis points to 3.95 per cent, the most since the reference rate was introduced in 2019.

The PBOC last cut the rate on one-year medium-term lending facility loans, a guide to the loan prime rate, by 15 basis points to 2.50 per cent in August.

“(Other) central banks are doing QE because their policy rates are close to zero and they can’t cut any further, but the PBOC still has room to cut its policy rate, which is now 2.5 per cent,” Macquarie economists wrote in a note.

China is targeting 3.9 trillion yuan (US$540 billion) in local government special bond issuance this year to support the economy, up from 3.8 trillion yuan last year, and 1 trillion yuan in special ultra-long term treasury bonds to help key sectors.

Reflecting high demand for bonds and the ample liquidity in the financial system, China’s 30-year treasuries yield around 2.47 per cent, near this month’s record low of 2.442 per cent.

“Whether you look at money supply or the level of interest rates, the degree of monetary easing we’ve experienced has rarely been seen in history,” said Xia Chun, chief economist at Forthright Holdings. — Reuters

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Fri, 29 Mar 2024 17:53:25 +0800 china monetary policies,Xi Jinping
<![CDATA[LTAT appoints Azizan Ariffin as new chairman, Mohammad Ashraf as new chief executive]]> https://www.malaymail.com/news/money/2024/03/29/ltat-appoints-azizan-ariffin-as-new-chairman-mohammad-ashraf-as-new-chief-executive/126212 https://www.malaymail.com/news/money/2024/03/29/ltat-appoints-azizan-ariffin-as-new-chairman-mohammad-ashraf-as-new-chief-executive/126212 Malay Mail Social Logo

KUALA LUMPUR, March 29 — The Armed Forces Fund Board (LTAT) today announced the appointment of General (retired) Tan Sri Azizan Ariffin as its new chairman and Mohammad Ashraf Md Radzi as new chief executive, effective April 1, 2024.

It said in a statement that Azizan brings with him a wealth of experience and leadership acumen, having served with distinction in the Malaysian Armed Forces for 40 years, including becoming the 17th Chief of Defence Force, the first from the Royal Malaysian Air Force.

“His extensive background in military affairs, diplomacy and leadership development will be instrumental in guiding LTAT towards its strategic objectives and enhancing its role in supporting the welfare of our armed forces personnel and their families,” it said.

Meanwhile, LTAT said Mohammad Ashraf will assume the role of chief executive following his tenure as chief financial officer of LTAT since March 2020.

“During his tenure, he demonstrated financial stewardship, spearheading the organisation’s financial strategies and ensuring fiscal responsibility.

“His leadership contributed to the organisational transformation agenda, resulting in the recovery of dividend levels to a sustainable rate, enhanced financial position as well as improved operational effectiveness,” it added. — Bernama

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Fri, 29 Mar 2024 17:34:59 +0800 Armed Forces Fund Board LTAT,Azizan Ariffin,Mohammad Ashraf Md Radzi,chairman,chief executive officer CEO
<![CDATA[MR D.I.Y expands presence with new international concept store]]> https://www.malaymail.com/news/money/2024/03/29/mr-diy-expands-presence-with-new-international-concept-store/126208 https://www.malaymail.com/news/money/2024/03/29/mr-diy-expands-presence-with-new-international-concept-store/126208 Malay Mail

PETALING JAYA, March 29 — MR D.I.Y PLUS, Malaysia’s favourite value superstore, today unveiled a new international concept at its latest outlet at IPC Shopping Centre here.

MR D.I.Y. Group’s chief executive officer (CEO) Adrian Ong said its latest outlet, spanning over 23,000 square feet, will feature the international concept from its four brands, namely MR D.I.Y., MR. DOLLAR, MR. TOY and EMTOP under one roof.

“This is our first themed MR D.I.Y. PLUS store. Our commitment to our customers is to create fresh concepts to regularly keep their shopping experiences exciting.

“Knowing how much Malaysians enjoy travelling and taking pictures, we created a store showcasing some of the world’s most iconic imagery to enhance our customers’ shopping experience and increase their enjoyment,” he said when launching the store.

Ong said the store’s international theme draws inspiration from famous international icons such as Dubai’s Miracle Garden, Turkiye’s hot air balloons in Cappadocia and Middle Eastern’s famous Eid decor.

MR D.I.Y. Group’s CEO Adrian Ong said its latest outlet, spanning over 23,000 square feet, will feature the international concept from its four brands, namely MR D.I.Y., MR. DOLLAR, MR. TOY and EMTOP under one roof. — Bernama pic
MR D.I.Y. Group’s CEO Adrian Ong said its latest outlet, spanning over 23,000 square feet, will feature the international concept from its four brands, namely MR D.I.Y., MR. DOLLAR, MR. TOY and EMTOP under one roof. — Bernama pic

Furthermore, Ong said the newly opened outlet is the first to present the complete range of EMTOP’s hardware tools and equipment.

Commenting on Mutiara Damansara’s selection, Ong said it has a robust residential catchment and a mature shopping mindset.

“They will appreciate our wide range of everyday essentials, the value we bring to their household budgets and the convenient, cheerful and welcoming space we have created for them here.

“At the end of the day, we want customers to be entertained, have fun, be educated, and be inspired while shopping for daily essentials at ‘Always Low Prices’,” said Ong.

MR D.I.Y. Group has lined up a series of activities and promotions from March 29 to 31 as part of this store’s grand opening festivities.

This store is the second to operate under the MR. D.I.Y. Plus brand, following the first outlet which opened in Mid Valley Megamall here in 2022.

To date, MR D.I.Y Group has more than 1,200 stores across the country. — Bernama

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Fri, 29 Mar 2024 17:22:01 +0800 MR D.I.Y.,concept store
<![CDATA[Chinese telecoms giant Huawei says profits more than doubled in 2023]]> https://www.malaymail.com/news/money/2024/03/29/chinese-telecoms-giant-huawei-says-profits-more-than-doubled-in-2023/126197 https://www.malaymail.com/news/money/2024/03/29/chinese-telecoms-giant-huawei-says-profits-more-than-doubled-in-2023/126197 Malay Mail

BEIJING, March 29 — Chinese telecom giant Huawei today said its profits more than doubled in 2023, a year that saw the company defy US sanctions with the release of a high-end smartphone.

Last year, the Shenzhen-based firm generated a profit of 87 billion yuan (RM56 billion), more than double 2022’s 35.6 billion yuan but short of its record profit of 113.7 billion yuan in 2021.

Revenues also surged by 9.6 per cent.

“We’ve been through a lot over the past few years,” Rotating Chairman Ken Hu said. “But through one challenge after another, we’ve managed to grow.”

Huawei has been at the centre of an intense standoff between China and the United States, with Washington warning its equipment could be used for espionage, an allegation the company denies.

Sanctions since 2019 have cut Huawei’s access to US-made components and technologies, forcing it to diversify. — AFP

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Fri, 29 Mar 2024 16:48:29 +0800 Huawei Technologies Co,profit
<![CDATA[Vietnam Q1 growth hits five-year high on strong exports]]> https://www.malaymail.com/news/money/2024/03/29/vietnam-q1-growth-hits-five-year-high-on-strong-exports/126188 https://www.malaymail.com/news/money/2024/03/29/vietnam-q1-growth-hits-five-year-high-on-strong-exports/126188 Malay Mail

HANOI, March 29 ― Vietnam's economy grew by 5.66 per cent on-year in the first quarter, according to official data published today, boosted by strong exports.

It is the communist country's strongest Q1 growth since 2019, but still well off Standard Chartered Bank's forecast of 6.1 per cent.

“The country's socioeconomic situation in the first quarter of 2024 achieved positive result despite many uncertainties in the world economy,” the General Statistics Office (GSO) said in a statement.

The industrial and construction sector expanded by 6.28 per cent, while the service sector grew 6.12 per cent compared with the same period in the previous year.

A major global manufacturing hub, Vietnam also earned US$93 billion (RM439.2 billion) from goods exports in the first quarter, up 17 per cent year-on-year. The United States was its largest export market during this period.

Vietnam's trade surplus reached US$8.08 billion in Q1, up from US$4.93 billion in the same period last year, the GSO said.

Authorities are targeting 6-6.5 per cent growth in 2024, up on the 5.05 per cent seen last year, while the Asian Development Bank forecast the year-end figure could reach six per cent. ― AFP

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Fri, 29 Mar 2024 15:48:27 +0800 vietnam economy
<![CDATA[Bank Negara: Malaysia's official reserve assets at US$114.28b as at end-February 2024]]> https://www.malaymail.com/news/money/2024/03/29/bank-negara-malaysias-official-reserve-assets-at-us11428b-as-at-end-february-2024/126172 https://www.malaymail.com/news/money/2024/03/29/bank-negara-malaysias-official-reserve-assets-at-us11428b-as-at-end-february-2024/126172 Malay Mail

KUALA LUMPUR, March 29 ― Malaysia’s official reserve assets amounted to US$114.28 billion (RM540.4 billion) as at end-February 2024, while other foreign currency assets stood at US$202.69 million, according to Bank Negara Malaysia (BNM).

The central bank said the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets in accordance with the International Monetary Fund’s (IMF) Special Data Dissemination Standard (SDDS) format.

It also provides guidance on the expected and potential future inflows and outflows of foreign exchange of the federal government and BNM over the next 12-month period.

“Overall, the detailed breakdown of international reserves under the IMF SDDS format indicated that as of end-February 2024, Malaysia’s international reserves remained usable,” it said in a statement today.

BNM said that for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include, among others, scheduled repayment of external borrowings by the government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to US$16.33 billion.

“The net short forward positions amounted to US$22.59 billion as of end-February 2024, reflecting the management of ringgit liquidity in the money market,” it said.

BNM said that in line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans.

It added that foreign currency inflows are projected to amount to US$2.46 billion in the next 12 months.

BNM noted that the only contingent short-term net drain on foreign currency assets is government guarantees of foreign currency debt due within one year, amounting to US$400.9 million.

“There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks, and other financial institutions.

“BNM also does not engage in foreign currency options vis-à-vis ringgit,” it added. ― Bernama

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Fri, 29 Mar 2024 13:08:02 +0800 bank negara malaysia bnm,malaysia reserve assets
<![CDATA[Securities Commission issues revised guidelines on conduct for capital market intermediaries]]> https://www.malaymail.com/news/money/2024/03/29/securities-commission-issues-revised-guidelines-on-conduct-for-capital-market-intermediaries/126171 https://www.malaymail.com/news/money/2024/03/29/securities-commission-issues-revised-guidelines-on-conduct-for-capital-market-intermediaries/126171 Malay Mail

KUALA LUMPUR, March 29 ― The Securities Commission Malaysia (SC) today issued the revised Guidelines on Conduct for Capital Market Intermediaries, aimed at elevating the standards of professionalism and integrity of capital market intermediaries (CMIs) in the industry.

It said the revised guidelines, among others, reinforce the role of a CMI’s board and senior management in inculcating a corporate culture that prioritises clients’ interests.

“The guidelines also clarify the SC’s expectations on CMIs’ duty to act honestly and fairly as well as avoid misleading and deceiving its clients under any circumstances.

“New chapters are introduced to address crucial areas such as treatment of vulnerable clients, as well as provision of personal advice and capital market-related services including through online platforms,” it said in a statement.

SC chairman Datuk Seri Awang Adek Hussin said the revised guidelines signify the commission’s efforts towards fostering trust, integrity and client-centricity in the capital market industry by, among others, minimising the risk of mis-selling, avoiding reputational damage, reducing complaints, and improving client retention.

“We are confident that these enhancements will not only elevate standards but also reinforce investor confidence in our capital market,” he added.

The revised guidelines will come into effect on October 1, 2024, to allow sufficient time for the CMIs to familiarise and prepare to meet the new requirements of the revised guidelines. ― Bernama

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Fri, 29 Mar 2024 12:54:12 +0800 Securities Commission Malaysia
<![CDATA[Bursa Malaysia remains higher at mid-morning]]> https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-remains-higher-at-mid-morning/126170 https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-remains-higher-at-mid-morning/126170 Malay Mail

KUALA LUMPUR, March 29 ― Bursa Malaysia remained higher at mid-morning as bargain hunting re-emerged, particularly in the financial services, utilities and technology sectors.

At 11am, the FTSE Bursa Malaysia KLCI (FBM KLCI) strengthened 9.01 points to 1,539.61 from Wednesday's close of 1,530.60.

The benchmark index opened 1.51 points higher at 1,532.11.

On the broader market, gainers led decliners 439 to 333 while 450 counters were unchanged, 1,098 untraded and 55 others suspended.

Turnover amounted to 1.22 billion units worth RM719.55 million.

Among the heavyweight counters, Maybank and Public Bank gained 4.0 sen each to RM9.69 and RM4.25 respectively, CIMB Group added 14.0 sen to RM6.69, and Tenaga Nasional rose 10.0 sen RM11.34, while Petronas Chemicals slid 9.0 sen to RM6.70.

Among the actives, Hong Seng Consolidated, Lambo Group and Destini Bhd were flat at 1.0 sen, 3.0 sen and 3.5 sen respectively, while MMAG Holdings notched up 1.0 sen to 18.5 sen and Ingenieur Gudang slipped half-a-sen to 15.5 sen.

On the index board, the FBM Emas Index climbed 54.72 points to 11,580.70, the FBMT 100 Index increased 54.57 points to 11,227.11, the FBM Emas Shariah Index ascended 23.41 points to 11,636.85, the FBM ACE Index advanced 53.38 points to 4,896.11, and the FBM 70 Index rose 32.87 points to 16,181.02.

Sector-wise, the Financial Services Index surged 123.42 points to 17,305.54, and the Energy Index advanced 9.65 points to 952.64.

Meanwhile, the Plantation Index trimmed 0.21 point to 7,298.35, and the Industrial Products and Services Index edged down 0.27 point to 179.27.

Bursa Malaysia Bhd and its subsidiaries were closed yesterday in conjunction with Nuzul Al-Quran. ― Bernama

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Fri, 29 Mar 2024 12:49:13 +0800 bursa malaysia,Bursa Malaysia mid-morning
<![CDATA[Kenanga Research maintains 'overweight' call on construction sector]]> https://www.malaymail.com/news/money/2024/03/29/kenanga-research-maintains-overweight-call-on-construction-sector/126159 https://www.malaymail.com/news/money/2024/03/29/kenanga-research-maintains-overweight-call-on-construction-sector/126159 Malay Mail

KUALA LUMPUR, March 29 ― Kenanga Research has maintained an “Overweight” call on the construction sector ahead of the roll-out of various mega public infrastructure projects such as the Mass Rapid Transit line 3 (MRT3), Bayan Lepas light rail transit (LRT), large-scale flood mitigation projects as well as the new Pan Borneo Highway packages.

In a note today, it said the RM45 billion MRT3 or MRT Circle Line will provide connectivity to the existing MRT, LRT, monorail and train lines in the Klang Valley through interchange stations while the RM9.5 billion Bayan Lepas LRT will help to ease the chronic traffic congestion on Penang island.

The others are the roll-out of six flood mitigation projects reported to be worth RM13 billion including flood mitigation works at Sungai Johor (Johor), the construction of the Sungai Klang-Sungai Rasau dual-function reservoir (Selangor) and the Sungai Golok Integrated River Basin Development Phase 3 (Kelantan), and new packages for the Pan Borneo Highway.

“We believe there will be enough jobs to go around for all players. We are unperturbed by a lower gross development expenditure of RM90 billion in Budget 2024 versus RM97 billion estimated in Budget 2023 as the government can tap into DanaInfra Nasional Bhd to fund these large-scale public projects on an off-balance sheet basis,” it added.

Kenanga Research said meanwhile, the private-sector construction market will stay vibrant, underpinned by massive investment in new semiconductor foundries and data centres.

“Malaysia is gaining traction in terms of destination for data centre investment, as evidenced by Tenaga Nasional Bhd having signed electricity supply agreements with nine data centres requiring a potential energy demand of 2,300 megawatts (MW).

“So far, nine data centres have been completed with a total energy demand of 635MW,” it said.

The research house said its top picks are Gamuda Bhd, IJM Corporation Bhd and Sunway Construction Group Bhd (Suncon),” it said. ― Bernama

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Fri, 29 Mar 2024 11:16:21 +0800 Kenanga Research,construction sector
<![CDATA[Ringgit marginally weaker as US dollar firms amid fading rate cuts narrative]]> https://www.malaymail.com/news/money/2024/03/29/ringgit-marginally-weaker-as-us-dollar-firms-amid-fading-rate-cuts-narrative/126151 https://www.malaymail.com/news/money/2024/03/29/ringgit-marginally-weaker-as-us-dollar-firms-amid-fading-rate-cuts-narrative/126151 Malay Mail

KUALA LUMPUR, March 29 ― The ringgit opens softer against the US dollar today on rising bets that the United States (US) might delay its rate cuts based on recent economic data.

At 9.01am, the ringgit ease slightly to 4.7350/7410 against the greenback from Wednesday’s close of 4.7320/7370.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said foreign exchange (forex) players continued to remain bullish on the US dollar with the US Dollar Index (DXY) gaining 0.19 per cent to 104.546 points.

“It seems that the markets are convinced that a soft landing in the US economy is likely to be the case.

“While the Fed Funds Rate has peaked, the US Federal Reserve (Fed) is not about to alter its course very soon simply because it believes the inflation rate is still high and the economy cruising on a normal speed,” he told Bernama.

Mohd Afzanizam said the US economic data point remained robust with the final fourth quarter of 2023 estimates coming in higher than expected to 3.4 per cent quarter-on-quarter seasonally adjusted annualised rate against market expectation of 3.2 per cent.

US Fed governor Christopher Waller was reported saying that ‘there is no rush in taking the step to begin to ease monetary policy’, highlighting that recent economic data warrants delaying or reducing the number of cuts this year.

He also pointed to a strong economy and robust hiring as further reasons the Fed has room to wait to gain confidence that inflation is on a sustained path toward its 2.0 per cent target.

On top of that, the US Personal Consumption Expenditures (PCE) price index will be out later tonight, which will further provide clarity on the interest rate outlook in the US.

At home, the ringgit was traded mostly lower against a basket of major currencies, except versus the euro, whereby it rose to 5.1062/1127 from Wednesday’s close of 5.1233/1287.

The local unit depreciated against the British pound to 5.9775/9850 from 5.9742/9805 and slipped vis-a-vis the Japanese yen at 3.1287/1329 from 3.1261/1298 on Wednesday.

The ringgit traded mixed against Asean currencies.

It rose versus the Thai baht to 12.9815/13.0058 from 12.9925/13.0130 and was also higher against the Singapore dollar at 3.5079/5129 from 3.5112/5151 previously.

It barely moved against the Philippine peso, trading at 8.41/8.42 from 8.41/8.43 on Wednesday and was lower versus the Indonesian rupiah at 298.5/299.1 from 298.3/298.8 previously. ― Bernama

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Fri, 29 Mar 2024 10:36:48 +0800 ringgit opening,ringgit vs us dollar
<![CDATA[Bursa Malaysia opens higher in sync with regional peers]]> https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-opens-higher-in-sync-with-regional-peers/126150 https://www.malaymail.com/news/money/2024/03/29/bursa-malaysia-opens-higher-in-sync-with-regional-peers/126150 Malay Mail

KUALA LUMPUR, March 29 ― Bursa Malaysia opened higher today, in tandem with the mostly higher regional peers despite the mixed sentiment on Wall Street overnight, said an analyst.

At 9.15am, the FTSE Bursa Malaysia KLCI (FBM KLCI) added 2.92 points to 1,533.52 from Wednesday’s close of 1,530.60.

The benchmark index opened 1.51 points higher at 1,532.11.

On the broader market, gainers led decliners 267 to 214 while 373 counters were unchanged, 1,466 untraded and 55 others suspended.

Turnover amounted to 351.37 million units worth RM165.59 million.

In a note today, Malacca Securities Sdn Bhd expects the local market will trade in a rangebound mode today, tracking the mixed overnight performance on Wall Street.

“For sector focus, with the stronger commodities prices such as Brent oil and gold prices, we believe the market could focus on the oil and gas and gold-related sectors.

“The construction and property sectors will be taking the lead in the near term with the revival of infrastructure projects, higher investments in data centres and recovery prospects in the property segment,” it said.

The stockbroking firm also said that other sectors that may have short-term trading ideas include finance, technology and packaging.

Among the heavyweight counters, Maybank and Public Bank were flat at RM9.65 and RM4.21 respectively, CIMB Group added 9.0 sen to RM6.64, while Tenaga Nasional weakened 4.0 sen to RM11.20 and Petronas Chemicals slid 5.0 sen to RM6.74.

Among the actives, MMAG Holdings gained 1.0 sen to 18.5 sen, Ingenieur Gudang, Eduspec Holdings and Destini were all flat at 16.0 sen, 14.0 sen and 3.5 sen respectively, while VS Industry dropped 3.0 sen to 80.5 sen.

On the index board, the FBM Emas Index edged up 19.43 points to 11,545.41, and the FBMT 100 Index increased by 19.02 points to 11,191.56, and the FBM Emas Shariah Index gained 8.92 points to 11,622.36.

The FBM 70 Index rose by 17.89 points to 16,166.04 and the FBM ACE Index climbed 19.83 points to 4,862.56.

Sector-wise, the Industrial Products and Services Index shed 0.09 of-a-point to 179.45, the Financial Services Index improved by 36.78 points to 17,218.90, the Plantation Index went up 7.54 points to 7,306.10, and the Energy Index advanced 5.32 points to 948.31.

Bursa Malaysia Bhd and its subsidiaries were closed yesterday in conjunction with Nuzul Al-Quran. ― Bernama

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Fri, 29 Mar 2024 10:34:14 +0800 bursa malaysia,bursa malaysia opening
<![CDATA[New Boeing airplane chief says company faces 'pivotal moment']]> https://www.malaymail.com/news/money/2024/03/29/new-boeing-airplane-chief-says-company-faces-pivotal-moment/126131 https://www.malaymail.com/news/money/2024/03/29/new-boeing-airplane-chief-says-company-faces-pivotal-moment/126131 Malay Mail

NEW YORK, March 29 ― The new head of Boeing's troubled commercial airplane unit said the planemaker faces a “pivotal moment” as it works to boost quality and address significant concerns from regulators and airline customers after a panel flew off a 737 MAX 9 jet in January.

“This is a pivotal moment for us, and we have serious work ahead to build trust and improve our operations,” said Stephanie Pope, who was named president and CEO of Boeing Commercial Airplanes on Monday, in an email to employees on Wednesday seen by Reuters.

Pope was named chief operating officer in December and retains the title after holding a wide range of prior jobs at Boeing.

On Monday, Boeing CEO Dave Calhoun announced he would leave by the end of the year, while the company's long-time head of commercial airplanes, Stan Deal, retired effectively immediately and the board chair Larry Kellner stepped down and was replaced as chair by director Steve Mollenkopf.

GE CEO Larry Culp, who has been touted by industry executive analysts as a possible replacement for Calhoun, said at an event in New York he was fully focused on GE Aerospace and would return to its headquarters in Ohio. “There's no better business. There's no better job,” Culp said.

He said Boeing's board would be focused on leadership qualities in its CEO search. “This is a big company going through tremendous challenge right now,” Culp said, saying the planemaker must be thinking about long-term product and corporate strategy. “It won't be enough to get through the challenges of 2024.”

Boeing has come under intense criticism since a door plug panel tore off a new Alaska Airlines 737 MAX 9 jet at 16,000 feet.

In the aftermath of the incident, the FAA grounded the MAX 9 for several weeks, barred Boeing from increasing the MAX production rate and ordered it to develop a comprehensive plan to address “systemic quality-control issues” within 90 days.

Boeing production has fallen below the maximum 38 MAX planes per month the FAA is allowing. The Justice Department has opened a criminal investigation into the MAX 9 incident.

“Our path forward is clear. We will put safety and quality above all else in order to meet and exceed the expectations of our regulators, customers, flying public and each other,” Pope said.

She said over next couple of weeks, she “will be spending my time meeting and engaging with our team as we enhance and implement our safety and quality improvement plan.”

FAA Administrator Mike Whitaker said earlier the agency and Boeing hope by the end of March to define the milestones the manufacturer must meet. ― Reuters

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Fri, 29 Mar 2024 08:59:07 +0800 boeing
<![CDATA[IMF urges tighter Swiss regulation after UBS takeover of Credit Suisse]]> https://www.malaymail.com/news/money/2024/03/29/imf-urges-tighter-swiss-regulation-after-ubs-takeover-of-credit-suisse/126125 https://www.malaymail.com/news/money/2024/03/29/imf-urges-tighter-swiss-regulation-after-ubs-takeover-of-credit-suisse/126125 Malay Mail

BERN, March 29 ― The IMF urged Switzerland yesterday to strengthen its financial sector regulation as supervising UBS has become “more challenging” since it grew into a global banking behemoth after its takeover of Credit Suisse.

Switzerland's biggest bank was strongarmed by the government into buying Credit Suisse last year over fears that the second largest lender in the country might go under and spark a global financial crisis.

“Lessons from the CS (Credit Suisse) case should inform further reforms to strengthen the regulatory and supervisory framework,” the IMF said in a statement concluding its annual staff mission to Switzerland.

Like UBS, Credit Suisse was among 30 international banks deemed too big to fail due to their importance in the global banking architecture.

The merger raised serious concerns in Switzerland around jobs, competition and the size of the resulting bank relative to the Swiss economy.

“The complexity of the combined bank's global operations also makes supervision more challenging,” the International Monetary Fund said.

“In the event of future crisis, the previous merger options may no longer be feasible,” Pelin Berkmen, the head of the IMF delegation, warned at a press conference.

The Washington-based institution noted that UBS is the largest “G-SIB” ― global systematically important bank ― relative to its home country's economy.

The IMF said the “powers and resources” of the Swiss financial sector's supervisor must be increased “to enable early and effective intervention” when necessary.

The G20's Financial Stability Board, set up following the 2007-2008 global financial crisis to lead industry reforms, made a similar recommendation in February.

The Swiss Financial Market Supervisory Authority (FINMA) has also called for increased powers to punish bad banks.

UBS bought Credit Suisse at the bargain price of US$3.25 billion (RM15.4 billion).

The bank initially reported a net profit for 2023 of US$29 billion but it published a revised figure of US$27.8 billion yesterday after reviewing the fair-value estimate of the deal.

The IMF said the Swiss economy “boasts strong fundamentals” and growth is “expected to recover gradually this year” to 1.3 per cent, followed by 1.4 per cent in 2025.

But it added the country faces “several challenges” including “mounting spending pressures”, future financing gaps in the pension system and vulnerabilities in the real estate sector. ― AFP

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Fri, 29 Mar 2024 08:03:39 +0800 UBS Group,Credit Suisse,International Monetary Fund
<![CDATA[Global stocks subdued, yen in focus, with inflation data on tap]]> https://www.malaymail.com/news/money/2024/03/29/global-stocks-subdued-yen-in-focus-with-inflation-data-on-tap/126120 https://www.malaymail.com/news/money/2024/03/29/global-stocks-subdued-yen-in-focus-with-inflation-data-on-tap/126120 Malay Mail

NEW YORK, March 29 ― A gauge of global share markets was barely changed yesterday as it was poised to end the quarter with solid gains, while a strong dollar kept the yen near its weakest in decades amid the threat of intervention from Japanese authorities.

Wall Street's main stock indexes finished the session with minimal changes as markets broadly were largely rangebound ahead of Friday's much-anticipated US personal consumption expenditures (PCE) price index data, a closely watched inflation measure. Few markets will be open to assess and respond to the fresh data, however, given the long Easter weekend in many countries.

“People are probably a little cautious about positioning ahead of PCE,” said Sameer Samana, senior global market strategist at the Wells Fargo Investment Institute.

“For a lot of people today will be the last day of the week, they are probably squaring positions for the quarter, for the month.”

Heightened focus was on the yen, which last weakened 0.05 per cent against the greenback at 151.38 per dollar, having slid to a 34-year low of 151.975 in the previous session.

Japan's three main monetary authorities held an emergency meeting on Wednesday to discuss the weak yen, and suggested they were ready to intervene in the market to stop what they described as disorderly and speculative moves in the currency.

“Once dollar/yen touches 152, I think there will probably be a sharp move upward, and that's when intervention could take place,” said Takeshi Ishida, a currency strategist at Resona Holdings.

The dollar gained on the euro after a US Federal Reserve policymaker said he wasn't in a hurry to cut rates.

Fed Governor Christopher Waller said on Wednesday that recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but he did not rule out trimming rates later in the year.

The dollar index gained 0.12 per cent at 104.55, with the euro down 0.37 per cent at US$1.0786 (RM5.11).

MSCI's gauge of stocks across the globe fell 0.01 points, or basically no change, to 782.93. The index was set to post a gain of over 7 per cent for the first quarter.

On Wall Street, the Dow Jones Industrial Average rose 47.29 points, or 0.12 per cent, to 39,807.37, the S&P 500 gained 5.86 points, or 0.11 per cent, to 5,254.35 and the Nasdaq Composite lost 20.06 points, or 0.12 per cent, to 16,379.46.

Data yesterday showed the US economy grew faster than previously estimated in the fourth quarter, lifted by strong consumer spending and business investment in nonresidential structures like factories. Gross domestic product increased at a 3.4 per cent annualised rate last quarter, revised up from the previously reported 3.2 per cent pace.

US Treasury yields were slightly firmer on the day ahead of the inflation data.

The yield on benchmark US 10-year notes rose to 4.206 per cent, from 4.196 per cent late on Wednesday.

Oil prices rose, closing out the month higher on the prospect of Opec+ staying the course on production cuts, ongoing attacks on Russia's energy infrastructure and a falling US rig count tightening crude supplies.

US crude gained 2.04 per cent to US$83.01 a barrel and Brent rose to US$87.5 per barrel, up 1.64 per cent on the day. ― Reuters

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Fri, 29 Mar 2024 07:58:21 +0800 global stocks
<![CDATA[S&P 500 closes higher to secure strongest Q1 since 2019]]> https://www.malaymail.com/news/money/2024/03/29/sp-500-closes-higher-to-secure-strongest-q1-since-2019/126116 https://www.malaymail.com/news/money/2024/03/29/sp-500-closes-higher-to-secure-strongest-q1-since-2019/126116 Malay Mail

NEW YORK, March 29 ― The S&P 500 closed out the week with slight gains yesterday, with the benchmark index notching its strongest first quarter in five years, as investors digested the latest batch of economic data while looking towards the next inflation reading.

Each of the three main US indexes recorded solid quarterly gains, led by a climb of 10.16 per cent for the S&P 500, aided by optimism over artificial intelligence (AI) related stocks and expectations the US Federal Reserve will begin to cut interest rates this year.

The blue-chip Dow sits less than 1 per cent away from breaching the 40,000 level for the first time.

Data on Thursday showed the US economy grew faster than previously estimated in the fourth quarter, partly due to strong consumer spending, while a separate report showed initial jobless claims indicated the labour market remains on solid footing.

“The economy is in pretty good shape, the consumer is in pretty good shape and still spending, unemployment is still on the low side, and there continues to be pockets where the economy is thriving ... So there's money that is wanting to be spent in a variety of different ways,” said George Young, portfolio manager at Villere & Company in New Orleans.

“And then you've got that carrot that the Fed's kind of holding out there saying, we may just be lowering and we may just be lowering, and everybody's trying to parse their words.”

While US equity markets will be closed for the Good Friday holiday, the focus will be on the release of the Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, for clues on the timing and size of rate cuts this year from the central bank.

The Dow Jones Industrial Average rose 47.29 points, or 0.12 per cent, to 39,807.37, the S&P 500 gained 5.86 points, or 0.11 per cent, to 5,254.35 and the Nasdaq Composite lost 20.06 points, or 0.12 per cent, to 16,379.46.

For the week, the Dow rose 0.84 per cent, the S&P 500 advanced 0.39 per cent and the Nasdaq slipped 0.3 per cent. In March, the Dow climbed 2.08 per cent, the S&P gained 3.1 per cent and the Nasdaq added 1.79 per cent. For the quarter, the Dow gained 5.62 per cent, the S&P 500 shot up 10.16 per cent and the Nasdaq rallied 9.11 per cent.

Overnight, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but did not rule out trimming rates later in the year.

Markets are pricing in a roughly 64 per cent chance the Fed will cut rates by at least 25 basis points (bps) in June, according to CME's FedWatch Tool.

While communication services, energy and tech were the best performing of the 11 major sectors this quarter, only real estate suffered a decline.

Walgreens Boots shares rose 3.19 per cent after its quarterly earnings in which it recorded an impairment charge on its investment in clinic operator VillageMD.

Home Depot slipped 0.59 per cent after the home improvement retailer said it would buy building materials supplier SRS Distribution in an US$18.25 billion (RM86.4 billion) deal in its largest acquisition.

Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 1.42-to-1 ratio.

The S&P 500 posted 91 new 52-week highs and no new lows while the Nasdaq recorded 275 new highs and 52 new lows.

Volume on US exchanges was 11.17 billion shares, compared with the 12.07 billion average for the full session over the last 20 trading days. ― Reuters

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Fri, 29 Mar 2024 07:52:50 +0800 us stocks
<![CDATA[Frustration for some of Bankman-Fried's victims who hoped for stiffer sentence]]> https://www.malaymail.com/news/money/2024/03/29/frustration-for-some-of-bankman-frieds-victims-who-hoped-for-stiffer-sentence/126110 https://www.malaymail.com/news/money/2024/03/29/frustration-for-some-of-bankman-frieds-victims-who-hoped-for-stiffer-sentence/126110 Malay Mail

WASHINGTON, March 29 ― Some former FTX customers expressed anger and disappointment yesterday after Sam Bankman-Fried, the crypto exchange's former billionaire boss, was sentenced to 25 years in prison for stealing US$8 billion (RM37.9 billion) from customers.

“25 years is a joke,” a member of an FTX creditors group with the username Bruno Dixon wrote on messaging app Telegram minutes after the sentence was handed down by a New York judge.

Another member of the same Telegram group, going by Steven, said the sentence was “laughable for such a serious crime.”

More than an estimated 1 million customers face potential losses as a result of FTX's sudden November 2022 collapse. Victims say they are still owed more than US$19 billion based on current crypto prices.

A New York jury last year found Bankman-Fried guilty of stealing from unsuspecting customers to prop up his hedge fund Alameda Research, buy luxury properties and fund political donations.

Prosecutors sought a sentence of 40 to 50 years for what they say was one of the biggest financial frauds in US history. Bankman-Fried's defence has argued that around five years would be appropriate since customers would likely be made whole.

Some victims yesterday said the sentence was as expected for a corporate fraud crime.

“White collar guys get treated differently so 25 is probably as good as it was going to get,” wrote one of the Telegram group's administrators, adding members should focus on recovering their assets.

But other victims compared it unfavourably to the 150 years handed down to notorious fraudster Bernie Madoff.

“I found 30-40 to be somewhat fair,” wrote Tristan, another user of the same Telegram group, which has more than 3,000 members who say they have a combined nearly US$700 million in claims.

Bankman-Fried's attorneys said the former FTX boss had overlooked risk management but did not steal customer money. Bankman-Fried has vowed to appeal his conviction and sentence.

Some customers said they thought 25 years was not enough to justify plea deals prosecutors inked with other top FTX executives, which allowed them to avoid stringent punishments in return for acting as witnesses. Many speculated Bankman-Fried would serve significantly less following his promised appeal.

Mark Bini, a former federal prosecutor, said the judge's sentence took into account the magnitude of the crime and the finding that Bankman-Fried lied on the stand.

“While less than the prosecutors' request for 40-50 years, it is a very significant sentence and sends a message that people convicted of crimes in the crypto space will face serious consequences,” said Bini, now a partner at law firm Reed Smith.

During the trial, prosecutors called FTX customers to testify and submitted dozens of victim impact statements to the court ahead of the sentencing. Many said they had lost years worth of savings and that their lives had been destroyed.

“I lost my happiness, my ability to get out of bed, my desire to continue living,” wrote one FTX customer who said they had a US$4 million claim. Names were redacted.

Reuters reported last year that FTX customers have created support groups to help each another navigate the complex bankruptcy claims process.

Administrators now running FTX are still recovering assets. They said in January that they expect to have US$13.7 billion to pay US$31.4 billion in legitimate claims, including US$9.2 billion from customers.

Customers will be paid “in full” but at November 2022 crypto prices, the administrators said, meaning customers will not benefit from a rally in bitcoin and other tokens in recent months. Many FTX customers are fighting that decision.

FTX was one of a string of crypto company bankruptcies in 2022 sparked by a collapse in crypto prices. ― Reuters

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Fri, 29 Mar 2024 07:35:11 +0800 FTX collapse,Sam Bankman-Fried
<![CDATA[Bankman-Fried sentenced to 25 years for multi-billion dollar FTX fraud]]> https://www.malaymail.com/news/money/2024/03/29/bankman-fried-sentenced-to-25-years-for-multi-billion-dollar-ftx-fraud/126108 https://www.malaymail.com/news/money/2024/03/29/bankman-fried-sentenced-to-25-years-for-multi-billion-dollar-ftx-fraud/126108 Malay Mail

NEW YORK, March 29 ― Sam Bankman-Fried was sentenced to 25 years in prison by a judge yesterday for stealing US$8 billion (RM37.9 billion) from customers of the now-bankrupt FTX cryptocurrency exchange he founded, the last step in the former billionaire wunderkind's dramatic downfall.

US District Judge Lewis Kaplan handed down the sentence at a Manhattan court hearing after rejecting Bankman-Fried's claim that FTX customers did not actually lose money and finding that he lied during his trial testimony. A jury found Bankman-Fried, 32, guilty on November 2 on seven fraud and conspiracy counts stemming from FTX's 2022 collapse in what prosecutors have called one of the biggest financial frauds in US history.

Kaplan said Bankman-Fried has shown no remorse.

“He knew it was wrong,” Kaplan said. “He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.”

Bankman-Fried, wearing a beige short-sleeve jail T-shirt, acknowledged during 20 minutes of remarks to the judge that FTX customers had suffered and he offered an apology to his former FTX colleagues - but did not admit criminal wrongdoing.

He has vowed to appeal his conviction and sentence.

Bankman-Fried stood with his hands clasped before him as Kaplan read the sentence. He then spoke with his defence lawyer Marc Mukasey briefly before being led out of the courtroom by members of the US Marshals Service.

The sentence marked the culmination of Bankman-Fried's plunge from an ultra-wealthy entrepreneur and major political donor to the biggest trophy to date in a crackdown by US authorities on malfeasance in cryptocurrency markets.

“There are serious consequences for defrauding customers and investors,” US Attorney General Merrick Garland said in a statement. “Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice.”

Kaplan found that FTX customers lost US$8 billion, FTX's equity investors lost US$1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost US$1.3 billion. He imposed an US$11 billion forfeiture order and authorized the government to repay victims with seized assets.

Federal prosecutors had sought a sentence of 40 to 50 years. Mukasey had argued for a sentence of less than 5-1/4 years.

'I'm sorry for that'

Addressing the judge, Bankman-Fried said, “Customers have been suffering ... I didn't at all mean to minimize that. I also think that's something that was missing from what I've said over the course of this process, and I'm sorry for that.”

Referring to his FTX colleagues, Bankman-Fried added, “They put a lot of themselves into it, and I threw that all away. It haunts me every day.”

Three former close associates testified as prosecution witnesses that Bankman-Fried had directed them to use FTX customer funds to plug losses at Alameda Research. All three have pleaded guilty to fraud.

Kaplan said Bankman-Fried lied when testified that he did not know Alameda Research had spent customer deposits taken from FTX.

Mukasey sought to distance Bankman-Fried from notorious fraudsters like Bernie Madoff, saying he was “not a ruthless financial serial killer” but rather an “awkward math nerd” who tried to get customers their money back after FTX's collapse.

“Sam Bankman-Fried doesn't make decisions with malice in his heart,” Mukasey added. “He makes decisions with math in his head.”

Bankman-Fried's eyes turned red as he appeared to hold back tears while Mukasey spoke.

His parents, Stanford University law professors Joseph Bankman and Barbara Fried, attended the sentencing. Bankman held a green umbrella as they exited the courthouse into a rainy New York afternoon, their arms around each other.

“We are heartbroken and will continue to fight for our son,” they said in a statement.

'Power and influence'

A Massachusetts Institute of Technology graduate, Bankman-Fried rode a boom in the values of bitcoin and other digital assets to a net worth of US$26 billion, according to Forbes magazine, before he turned 30.

Bankman-Fried became known for his mop of unkempt curly hair and commitment to a movement called effective altruism, which encourages talented young people to focus on earning money and giving it away to worthy causes.

He was one of the biggest contributors to Democratic candidates and causes before the 2022 U.S. midterm elections. Kaplan pointed to trial evidence showing Bankman-Fried also donated to Republicans through “straw” donors to hide his involvement.

The judge called Bankman-Fried's efforts to present himself as a “good guy” an act, adding, “The goal was power and influence.”

Bankman-Fried has been detained at the Metropolitan Detention Center in Brooklyn since August 2023, when Kaplan revoked his bail after finding he likely tampered with witnesses at least twice. Kaplan said he would recommend Bankman-Fried be sent to a prison close to San Francisco. ― Reuters

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Fri, 29 Mar 2024 07:25:00 +0800 Sam Bankman-Fried,FTX collapse
<![CDATA[Wall Street ticks up ahead of Easter break, eyes sharp Q1 gains]]> https://www.malaymail.com/news/money/2024/03/28/wall-street-ticks-up-ahead-of-easter-break-eyes-sharp-q1-gains/126103 https://www.malaymail.com/news/money/2024/03/28/wall-street-ticks-up-ahead-of-easter-break-eyes-sharp-q1-gains/126103 Malay Mail

NEW YORK, March 28 — Wall Street edged higher today in thin trading ahead of Easter break, while investors awaited data to gauge the Federal Reserve’s policy path on the last business day of a strong first quarter.

The three main US indexes were set for robust quarterly gains, as an AI-fuelled rally and optimism around the Fed’s rate cuts helped lift Wall Street to record highs this month.

The blue-chip Dow rose marginally in early trading and remained on track to cross the 40,000 level for the first time.

“The stock market performed extremely well during the first quarter of 2024, and as long as earnings remain strong, the market can continue to move higher,” said Jeremy Straub, CEO and chief investment officer at Coastal Wealth.

“First-quarter earnings season is likely to be the next driver of market sentiment, which right now remains very optimistic.”

Data today showed the US economy grew faster than previously estimated in the fourth quarter, while a separate report showed initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 210,000 for the week ended March 23.

Heading into the long weekend, focus will also be on the Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred inflation gauge, which is due on Good Friday, when the US stock market will be shut.

Overnight, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but did not rule out trimming rates later in the year.

Traders see a 64 per cent chance the Fed will begin its easing cycle in June, according to the CME FedWatch tool.

At 10.03am ET, the Dow Jones Industrial Average was up 25.28 points, or 0.06 per cent, at 39,785.36, the S&P 500 was up 6.02 points, or 0.11 per cent, at 5,254.51, and the Nasdaq Composite was up 10.75 points, or 0.07 per cent, at 16,410.27.

Most megacap growth stocks slipped, weighing on the tech-heavy Nasdaq.

Chipmaker Nvidia struggled for direction after falling more than 2 per cent in each of the last two sessions. The AI winner is still set for more than 80 per cent gains this quarter.

The Philadelphia Semiconductor Index inched up and was on track to end its second straight quarter of double-digit gains, up over 17 per cent so far.

Two of the 11 major S&P 500 sectors declined, with communication services slipping. The rate-sensitive sector has been the best performer so far this quarter, along with technology stocks

Cryptocurrency and blockchain-related companies advanced as bitcoin recovered after a two-day slide. Exchange operator Coinbase Global, software company MicroStrategy and crypto miner Riot Platforms rose nearly 2 per cent each.

Advancing issues outnumbered decliners by a 2.62-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.

The S&P index recorded 72 new 52-week highs and no new lows, while the Nasdaq recorded 82 new highs and 20 new lows. — Reuters

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Thu, 28 Mar 2024 23:58:54 +0800 Wall Street,us stocks
<![CDATA[Chinese developer Country Garden says expects to suspend HK stock listing]]> https://www.malaymail.com/news/money/2024/03/28/chinese-developer-country-garden-says-expects-to-suspend-hk-stock-listing/126100 https://www.malaymail.com/news/money/2024/03/28/chinese-developer-country-garden-says-expects-to-suspend-hk-stock-listing/126100 Malay Mail

BEIJING, March 28 — Major Chinese property developer Country Garden expects to suspend trading of its Hong Kong-listed shares, the company said in a filing today, highlighting unprecedented challenges gripping the country’s debt-saddled real estate sector.

Country Garden is among several of China’s largest developers to face setbacks in recent years, along with Evergrande and Vanke, fuelling concerns about the stability of the world’s second-largest economy.

The company postponed the expected release of its 2023 results today, saying in a Hong Kong stock exchange filing that it “needs to collect more information to make appropriate accounting estimates and judgments”.

“It is expected that trading in the shares of the Company on the Stock Exchange will be suspended with effect from 9am (0100 GMT) on April 2, 2024,” Country Garden said, citing rules that require a suspension if an annual report is not published by Sunday.

A year ago, the firm posted its first full-year loss — more than 6 billion yuan (RM3.9 billion) — since it listed on the Hong Kong Stock Exchange in 2007.

Country Garden warned in October that it may not be able to meet all of its offshore payment obligations in time.

The real estate giant has defaulted on payments even as new deadlines loom, and failed repay 96 million yuan (RM61.5 million) early March.

It is now in a grace period expiring in April, during which time it will seek to avoid defaulting on payment.

Ripple effects

Large sums of unpaid debt by Country Garden would send ripple effects across markets and plunge a sector already under stress even further into the doldrums.

Real estate and construction have long accounted for more than a quarter of China’s gross domestic product (GDP), serving as a key engine for growth in the national economy.

But falling property prices are dissuading consumers from investing in homes, causing sales to plummet.

Country Garden competitor Evergrande — previously China’s top real estate firm — was the first to fall, fighting for survival since 2021.

A Hong Kong court ordered Evergrande’s liquidation in January.

Country Garden now faces a similar fate, with a Hong Kong ruling due in May in response to a winding-up petition submitted by creditors over non-payment of debt.

Country Garden was China’s seventh-largest developer in terms of sales last year.

The firm was founded in 1992 by Yang Guoqiang, who stepped down as head of the real estate giant in March 2023.

His daughter, Yang Huiyan — once the richest woman in China by virtue of inherited shares — now runs Country Garden.

Their family fortune fell by US$9 billion last year, according to a Hurun ranking of billionaires. — AFP

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Thu, 28 Mar 2024 23:52:43 +0800 Country Garden,delisting,hong kong stock exchange
<![CDATA[‘Operation Beethoven’: Dutch €2.5b charm offensive to keep ASML]]> https://www.malaymail.com/news/money/2024/03/28/operation-beethoven-dutch-25b-charm-offensive-to-keep-asml/126099 https://www.malaymail.com/news/money/2024/03/28/operation-beethoven-dutch-25b-charm-offensive-to-keep-asml/126099 Malay Mail

THE HAGUE, March 28 — The Dutch government today unveiled a plan worth €2.5 billion (RM12.7 billion) to retain global firms like chip giant ASML amid fears of a far-right clampdown on immigration.

The plan, dubbed “Operation Beethoven”, mainly aims to prevent ASML, which constructs machines to make semi-conductor chips, from moving abroad to attract talented workers.

The funding, equivalent to US$2.7 billion (RM12.7 billion), will come from the government but also the region around Eindhoven, in eastern Netherlands, where ASML is based.

“This is one of the most important companies in the Netherlands, a global player,” said Economy Minister Micky Adriaansens, according to local news agency ANP.

“ASML is our Messi and such a star player brings a whole team along with them,” she added.

ASML has raised concerns that reducing immigration including skilled workers to the Netherlands — as promised by far-right leader Geert Wilders, who won November elections — would force it to look elsewhere.

“If we cannot get the people here, we’ll get the people somewhere else. It’s very simple,” said chief executive Peter Wennink in January when ASML published its annual report.

“We are a company, we are a global company. We will go where we need to go to make sure the company can grow and service our customers,” he added.

“If the Netherlands shuts down, because we cannot get immigrants or foreign students, fine. You have to accept the consequences.”

The money announced Thursday will go towards investments in talent development, making it more attractive to live and work in the area, but also addressing concerns about electricity grid shortages.

“With these measures, the government assumes that ASML will make further investments in the Netherlands and retain the location of its statutory, tax and actual registered office in the Netherlands,” the government said.

“If investment plans change, these forecasts and the required commitment will be adjusted,” warned the Dutch government.

‘Significant source of talent’

Wilders has since indicated he will not seek to become prime minister but his PVV Freedom Party and others negotiating a coalition have all vowed to bring down immigration.

Another policy worrying multinationals based in The Netherlands is the phasing out of a lucrative tax break for talented expats.

Many politicians also want to crimp the number of foreigners at Dutch universities, which attract many talented students with high-quality English-language courses.

“That is a very significant source of talent that we need to drive innovation,” said Wennink.

ASML employs 42,000 worldwide, more than half of whom are based at the firm’s huge complex in Veldhoven, in the east of the country, with a significant proportion coming from abroad.

The “Brainport” region, which hosts ASML but also tech firms such as Philips, is considered to be the “Silicon Valley” of the Netherlands.

The Netherlands has traditionally been seen as a good place to do business, with a liberal economy and well-educated, English-speaking workforce.

But a report in February by the VNO-NCW business association suggested that climate was deteriorating.

Almost half (44 per cent) of entrepreneurs surveyed group do not find the Netherlands an attractive country to do business in and almost 20 per cent are considering leaving, the VNO-NCW said.

A year ago these percentages were 28 per cent and 13 per cent respectively.

The biggest concern voiced by entrepreneurs is a lack of political stability after the stunning election win of Wilders and his PVV party.

The PVV is currently negotiating a programme with three other parties but the process will take several more months and is not guaranteed to result in a stable government.

The Dutch business community has been shaken by recent departures of corporate behemoths such as consumer goods firm Unilever and energy giant Shell.

There are hopes that Unilever will list its ice cream division on the Amsterdam stock market, after spinning it off from the core business. — AFP

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Thu, 28 Mar 2024 23:44:51 +0800 netherlands,ASML Holding NV,semiconductor industry,microchip manufacturing
<![CDATA[How to use Touch ‘n Go eWallet in Japan? (VIDEO)]]> https://www.malaymail.com/news/money/2024/03/28/how-to-use-touch-n-go-ewallet-in-japan-video/126096 https://www.malaymail.com/news/money/2024/03/28/how-to-use-touch-n-go-ewallet-in-japan-video/126096 Malay Mail

KUALA LUMPUR, March 28 — Touch ‘n Go eWallet (TNG eWallet) is now accepted by 2 million merchants in Japan following the expansion of Alipay+’s footprint in the country. If you’re a Malaysian visiting Japan, you can enjoy a seamless cashless experience at major retail chains, convenience stores and small merchants with your TNG eWallet account.

According to Ant International, Alipay+ has enabled crossborder payments allowing merchants in Japan to accept payments from 16 eWallets and banking apps from 10 markets. Alipay+ coverage is now wider thanks to its integration with PayPay, a major mobile payment network in Japan.

Leveraging the Alipay+ crossborder payment network, the experience of using TNG eWallet in Japan is quite similar to mainland China. Just look out for merchants with the Alipay+ sign or PayPay QR code.

TNG eWallet in Japan: Merchant scan user

The majority of merchants in Japan including department stores and convenience stores in Japan are using the Merchant Scan User method. Here’s how to use your TNG eWallet at these merchants.

  1. Inform the cashier you’re using Alipay+
  2. Launch TNG eWallet
  3. Tap on Pay
  4. The Alipay+ QR and barcode will be displayed automatically together with the current foreign exchange rate
  5. Show the Alipay+ QR and barcode to the cashier or the scanner
  6. Once the transaction is completed, you will see a confirmation page containing the Ringgit Malaysia amount and foreign exchange rate.

TNG eWallet in Japan: User scans PayPay QR code

For merchants in Japan that use PayPay, you’ll have to scan the Merchant’s QR code instead. The experience is similar to scanning a DuitNow QR code in Malaysia. Here’s how to pay using TNG eWallet at a PayPay merchant in Japan:

  1. Inform the cashier you’re using Alipay+
  2. Launch the TNG eWallet app
  3. Tap on Scan
  4. Scan the PayPay QR code at the counter
  5. Enter the transaction amount in the local currency (JPY), then tap Confirm
  6. A Confirm Payment page will appear which displays the transaction amount in both currencies (JPY and MYR), then tap Pay Now.
  7. Enter your TNG eWallet 6-digit PIN to authorise payment
  8. Once the transaction is completed, you will see a confirmation page containing the Ringgit Malaysia amount and foreign exchange rate.

Extra rewards under A+ Rewards

Touch ‘n Go eWallet and Alipay+ are offering extra rewards and discounts via Alipay+ Rewards. For first-time users in Japan, Alipay+ is offering JPY 100 with a minimum spending of JPY 101. You can discover and collect deals for each supported country with the following steps:

  1. Launch TNG eWallet
  2. Tap on A+ Rewards
  3. From the top left corner, change the country from Malaysia to Japan
  4. Browse and download vouchers
  5. The vouchers will be applied automatically when you make an eligible payment. — SoyaCincau

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Alexander Wong Thu, 28 Mar 2024 23:31:03 +0800 japan,Touch n Go eWallet
<![CDATA[Why do certain songs make us want to dance? Scientists may have the answer]]> https://www.malaymail.com/news/money/2024/03/28/why-do-certain-songs-make-us-want-to-dance-scientists-may-have-the-answer/126093 https://www.malaymail.com/news/money/2024/03/28/why-do-certain-songs-make-us-want-to-dance-scientists-may-have-the-answer/126093 Malay Mail

PARIS, March 28 — Whether at a party or a nightclub, you’ve probably noticed that some songs make you want to dance more than others. A study published in the journal Science Advances claims that this is no coincidence. In fact, our bodies naturally want to get moving when our brains are able to anticipate the rhythm of the music.

A research team from France’s National Institute of Health & Medical Research, Inserm, and Aix-Marseille University came to this conclusion after studying the neural dynamics—ie, the interactions between neurons resulting from the brain’s electrical activity—of 30 volunteers while they listened to a dozen melodies.

These melodies had been designed by the researchers to have a rhythm of 120 beats per minute. Each melody was then modified to make its rhythm more or less complex, but without altering either the speed of the rhythm or the melody’s other musical characteristics.

The scientists then asked the participants to listen to these melodies while they recorded their brain activity in real time using a magnetoencephalography (MEG) machine. At the end of each listening session, the volunteers were asked to rate the level of “groove” they felt—in other words, their desire to dance.

At the same time, the study authors created a so-called ‘neurodynamic’ mathematical model of the neural network to better understand the calculations our brains make to determine whether a piece of music is “groovy” or not.

How our brains drive our desire to dance

The researchers found that participants were particularly keen to dance when they listened to music with a rhythm that was “not too simple or too complex,” as they report in a press release. “These findings show that the motor engagement linked to the groove is materialised by a temporal anticipation of the tempo. At brain level, this is based on a dynamic balance between the temporal predictability of the rhythm (the less complex the rhythm, the better it is) and the listener’s temporal prediction errors (the more complex the rhythm, the more errors they make),” explains Arnaud Zalta, first author of the study and post-doctoral fellow at ENS-PSL.

We may therefore find ourselves gripped by an overwhelming desire to dance when our brain is capable of anticipating the rhythm of the music we hear. Arnaud Zalta and colleagues hypothesise that the left sensorimotor cortex — a region of the brain involved in processing sensory information and coordinating movements — plays an important role in the “groove” experience. However, this possibility would need to be explored further in the future to confirm its veracity.

While our brains may drive our desire to dance, research suggests that we shouldn’t deny ourselves the pleasure. Dancing is a physical activity that benefits both body and mind, stimulating a whole host of cognitive processes simultaneously, from coordinating movements to the rhythm of the music to remembering steps. This activity also promotes our psychological well-being by increasing the release of oxytocin (the famous “love hormone”), and dopamine (the so-called “happiness hormone”), and decreasing the secretion of stress-related hormones such as cortisol. So next time you find yourself tapping your foot to the beat, don’t hold back! — ETX Studio

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Thu, 28 Mar 2024 23:16:41 +0800 scientists,songs,dance
<![CDATA[Melaka aims for RM10b investment, focuses on 10 key sectors, says exco ]]> https://www.malaymail.com/news/money/2024/03/28/melaka-aims-for-rm10b-investment-focuses-on-10-key-sectors-says-exco/126086 https://www.malaymail.com/news/money/2024/03/28/melaka-aims-for-rm10b-investment-focuses-on-10-key-sectors-says-exco/126086 Malay Mail

MELAKA, March 28 — The Melaka government is on track to meet its RM10 billion investment target this year by focusing on 10 key industries.

State Economic Planning, Finance, Land Affairs, Non-Government Agencies, Investment, Industry and Development of Technical and Vocational Education and Training (TVET) Committee chairman Datuk Khaidhirah Abu Zahar said the sectors include electrical and electronics, automotive, aerospace, oil and gas, renewable energy, halal manufacturing, biotechnology, machinery and equipment, pharmaceuticals and shipping.

“This target is a challenge to ensure that Melaka remains relevant as a prime investment destination in the country.

“To achieve this goal, the Academy in Industry (AiI) programme is one of the initiatives that can boost the growth and productivity of the industrial sector in the state,” she told reporters here today.

Khaidhirah added that the AiI programme can help improve the quality or skills of the workforce, especially for the industrial sector to reduce dependence on foreign labour and enable Melaka residents to fill the jobs offered by industry.

She called on more industries in the state to participate in the AiI programmes as it shows the serious commitment of the state government to attract more foreign investors to the state. — Bernama

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Thu, 28 Mar 2024 22:21:25 +0800 investment,melaka,Khaidhirah Abu Zahar
<![CDATA[US revises fourth quarter GDP growth higher]]> https://www.malaymail.com/news/money/2024/03/28/us-revises-fourth-quarter-gdp-growth-higher/126079 https://www.malaymail.com/news/money/2024/03/28/us-revises-fourth-quarter-gdp-growth-higher/126079 Malay Mail

WASHINGTON, March 28 — Economic growth in the United States for the fourth quarter last year was revised up unexpectedly, government data showed today, helped by higher estimates of consumer spending and investment.

GDP growth in the world’s largest economy was pegged at an annual rate of 3.4 per cent in the final three months of 2023, said the Commerce Department in its latest report.

The figure was above both its first and second estimates of 3.3 per cent and 3.2 per cent respectively.

“The update primarily reflected upward revisions to consumer spending and non-residential fixed investment,” said the Commerce Department.

But this was “partly offset by a downward revision to private inventory investment,” the report added.

Full-year growth was still at 2.5 per cent.

Analysts had generally anticipated the GDP estimates would remain unchanged at 3.2 per cent, but the number exceeded expectations.

Although experts predicted consumer spending would cool as households depleted their savings from the pandemic period and as borrowing costs remained high, consumption remained resilient last year.

The US economy also defied predictions of a recession, fuelling optimism that it is on the road to a “soft landing” where inflation comes down without triggering a damaging recession. — AFP

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Thu, 28 Mar 2024 21:40:26 +0800 united states US,US GDP,gross domestic product GDP
<![CDATA[Profits fall for China’s top chipmaker as sanctions bite]]> https://www.malaymail.com/news/money/2024/03/28/profits-fall-for-chinas-top-chipmaker-as-sanctions-bite/126078 https://www.malaymail.com/news/money/2024/03/28/profits-fall-for-chinas-top-chipmaker-as-sanctions-bite/126078 Malay Mail

SHANGHAI, March 28 — China’s top chipmaker posted today a fall in annual profits last year, the first since the United States imposed sanctions on it in 2020 as technological rivalry between Beijing and Washington intensified.

Semiconductors are an indispensable part of the modern economy, used in everything from kitchen appliances and mobile phones to cars and weapons.

The chips industry is increasingly caught in the crossfire as the United States and China vie for technological supremacy, with relations between the world’s two largest economies deteriorating in recent years.

Washington has sought to cut Chinese companies off from supply chains that give access to advanced US technology, tightening export restrictions on chips.

Semiconductor Manufacturing International Corporation (SMIC), China’s leading chipmaker, was targeted by US sanctions in 2020 over concerns about its military ties.

SMIC, listed in Hong Kong and its home city Shanghai, reported profits of US$902 million (RM4.2 billion) for 2023, down 50.1 per cent from the previous year.

Revenue for the year was US$6.3 billion, down 13.1 per cent.

The latest figures compare to a profit of US$1.7 billion in 2022 and revenue of US$7.2 billion.

“In 2023, the semiconductor industry went into a downward cycle due to global economic weakness, soft market demand and other factors,” SMIC said.

Beijing is seeking self-sufficiency in semiconductor manufacturing, directing billions of dollars in state funds in recent years in a bid to catch up with foreign competitors.

SMIC is “at the core of China’s semiconductor dream”, said Gary Ng, a senior economist at Natixis who specialises in the global chip trade.

“With state-led domestication and subsidies, the Chinese flagship chipmaker is actively adding manufacturing capacity and has made some progress in advanced nodes,” Ng told AFP.

Experts say SMIC has managed to produce a seven-nanometre chip — likely impossible without access to foreign technology — calling into question the effect of US sanctions.

Huawei smartphone

Chinese tech giant Huawei, which has also grappled with severe US restrictions, unveiled its new Mate 60 Pro smartphone last year powered by just such an advanced chip.

Bloomberg reported this month that SMIC and Huawei used technology from the United States to develop the chip in 2023, using machinery obtained before Washington banned such sales to China a year earlier.

US Under Secretary of Commerce for Industry and Security Alan Estevez said last week that SMIC “potentially” violated US laws in making the processor for Huawei.

The United States has also urged allies, including the Netherlands and Japan, to restrict the flow of advanced technology to SMIC and other Chinese chip firms.

Dutch Prime Minister Mark Rutte said in Beijing on Wednesday he couldn’t share details of what he had discussed with Chinese President Xi Jinping about semiconductors during a two-day visit.

The Netherlands is home to ASML, a world-leading manufacturer of machines used by companies around the world — including SMIC — to make state-of-the-art semiconductors.

Xi defiant

Rutte was accompanied by Dutch Trade Minister Geoffrey van Leeuwen, who discussed the export of advanced lithography machines during a meeting with his Chinese counterpart, Wang Wentao, yesterday.

ASML announced this year it had been blocked from exporting “a small number” of its advanced machines to China, amid reports of US pressure.

A defiant Xi told Rutte that China’s technological progress could not be held back.

“The Chinese people also have legitimate development rights, and no force can stop the pace of China’s scientific and technological progress,” Xi told Rutte, according to state news agency Xinhua. — AFP

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Thu, 28 Mar 2024 21:30:34 +0800 Semiconductor Manufacturing International Corp,china,semiconductor chips
<![CDATA[UK court decides US$10b jet dispute to be heard in London, not Moscow]]> https://www.malaymail.com/news/money/2024/03/28/uk-court-decides-us10b-jet-dispute-to-be-heard-in-london-not-moscow/126075 https://www.malaymail.com/news/money/2024/03/28/uk-court-decides-us10b-jet-dispute-to-be-heard-in-london-not-moscow/126075 Malay Mail

LONDON, March 28 — A US$10 billion (RM47.3 billion) battle between reinsurers and aircraft leasing companies seeking payouts for more than 200 jets stuck in Russia should be heard in London rather than Moscow, London’s High Court ruled today.

Aircraft lessors, including Ireland’s AerCap and US-listed Carlyle Aviation Partners, are pursuing insurers for financial losses after Russia’s invasion of Ukraine grounded their jets in Russia.

The lessors argued the legal case should be heard in London rather than Moscow, to avoid the risk of unfair hearings or inconsistent judgments.

Judge Andrew Henshaw ruled the cases should continue in London, saying in a written ruling on Thursday that “the claimants are very unlikely to obtain a fair trial in Russia”. — Reuters

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Thu, 28 Mar 2024 21:19:16 +0800 planes,UK court,Carlyle Aviation Partners,AerCap,insurer,aircraft lease
<![CDATA[China’s BYD slows down plans for EV factory in Vietnam, industrial park says]]> https://www.malaymail.com/news/money/2024/03/28/chinas-byd-slows-down-plans-for-ev-factory-in-vietnam-industrial-park-says/126074 https://www.malaymail.com/news/money/2024/03/28/chinas-byd-slows-down-plans-for-ev-factory-in-vietnam-industrial-park-says/126074 Malay Mail

HANOI, March 28 — Chinese electric vehicles maker BYD has slowed down its plans to build an EV factory in Vietnam, a manager of the industrial park where the plant would be built told a shareholders meeting today.

Vietnam’s government said in May that BYD had decided to build a factory to manufacture and assemble electric cars in the northern Vietnamese province of Phu Tho, where the company already has a plant that produces tablets for Apple.

“Due to its strategy and the slowdown of the electric vehicle market, BYD slowed down (plans) to start construction,” said Luong Thanh Tung, vice chairman of Gelex Group, the company that runs the industrial park where BYD would build the new factory.

Speaking at a shareholders conference in Hanoi, Tung said that after lengthy negotiations with BYD, Gelex had reserved 100 hectares (250 acres) of commercial land at the Phu Ha industrial park for an electric vehicle factory.

But after delays, the two sides were now seeking a suitable time to start the project, he told the meeting.

In a later statement to Reuters, Gelex said BYD had not made any formal announcement about the possible factory.

BYD headquarters in China did not respond to a request for comment about today’s statements from Gelex.

Growth in the global EV market is expected to slow this year because of a fall in state subsidies.

The Vietnamese government’s announcement about BYD’s investment plans followed a visit to the country by BYD head Wang Chuanfu in May. The statement did not indicate a starting date or the size of the investment for the project.

At a meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha in May, Chuanfu said he hoped for “favourable conditions to complete investment procedures,” according to the Vietnamese government.

BYD is building an EV factory in Thailand and plans to build EV facilities in Indonesia.

Last year it sold globally over 3 million electric vehicles, including battery EVs and plug-in hybrids. — Reuters

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Thu, 28 Mar 2024 21:14:33 +0800 BYD,vietnam,electric vehicles EVs,factory
<![CDATA[Do not depend too much on commodities to build Sabah’s economy, says Hajiji]]> https://www.malaymail.com/news/money/2024/03/28/do-not-depend-too-much-on-commodities-to-build-sabahs-economy-says-hajiji/126066 https://www.malaymail.com/news/money/2024/03/28/do-not-depend-too-much-on-commodities-to-build-sabahs-economy-says-hajiji/126066 Malay Mail

KOTA KINABALU, March 28 — Chief Minister Datuk Seri Hajiji Noor does not want Sabah to depend only on the trading of commodities, especially palm oil and oil and gas, in developing the state’s economy, but rather to diversify and develop new economic resources.

He said that to realise this, the research results from the 21 studies and research centres in the state need to be fully utilised to develop downstream industries in Sabah.

“Sabah needs to utilise the results of all this research to launch a paradigm shift to develop new economic resources,” he said in a statement after chairing a meeting of the Sabah Economic Development and Investment Authority (Sedia) in Tuaran today.

He noted that among the studies were the redevelopment of tourism in Mesilau; the redevelopment of the Poring Hot Water Centre, Ranau; the economic development study at the Sabah border; the master plan and business plan study for free economic zones; and the Sabah Inland Food Valley master plan study.

He said based on statistics from the Department of Statistics Malaysia (DoSM), Sabah’s main exports in 2022 are palm oil, amounting to RM21.1 billion; liquid natural gas (RM5.2 billion); crude petroleum (RM30 billion); and palm kernel oil (RM3.1 billion).

Hajiji, who is also the chairman of Sedia, noted that the state’s other export goods, both raw and processed, only amounted to RM3.5 billion. “This proves that we need to identify a wider market for non-commodity export goods. We also need to increase the production of non-commodity goods that have high export potential,” he said. — Bernama

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Thu, 28 Mar 2024 20:51:50 +0800 Hajiji Noor,sabah economy,commodities
<![CDATA[US cryptocurrency exchange-traded fund inflows pick up as bitcoin price recovers]]> https://www.malaymail.com/news/money/2024/03/28/us-cryptocurrency-exchange-traded-fund-inflows-pick-up-as-bitcoin-price-recovers/126048 https://www.malaymail.com/news/money/2024/03/28/us-cryptocurrency-exchange-traded-fund-inflows-pick-up-as-bitcoin-price-recovers/126048 Malay Mail

NEW YORK, March 28 — Inflows into the nine recently launched exchange-traded funds (ETFs) tied to bitcoin have resumed their upward trajectory this week after the cryptocurrency’s price bounced back from its dip last week.

“The resumption in bitcoin’s strong performance is sparking renewed interest in the ETFs,” said Todd Rosenbluth, head of research at VettaFi, an analysis firm.

The nine funds that made their debut in January pulled in nearly US$1 billion (RM4.7 billion) in assets in the first two days of this week, according to data from BitMEX Research. Yesterday’s flows data will be available on Thursday morning.

But the leadership has shifted from BlackRock’s iShares Bitcoin Trust to the Fidelity Wise Origin Bitcoin Fund. The latter attracted US$540.9 million in assets Monday and Tuesday, more than double the US$197.7 million BlackRock’s fund drew in the same period, BitMEX data showed.

The one fund that continues to buck this trend is the Grayscale Bitcoin Trust, which existed as a publicly traded trust before it converted into an ETF on the same day the other nine ETFs launched. It has seen steady outflows since then, regardless of bitcoin’s price movements. In the first two days of this week, those outflows reached US$562.4 million.

“At the moment, the numbers are all skewed by Grayscale,” said David Mercer, CEO of LMAX Group, an institutional cryptocurrency exchange.

However large these flows may be for the ETF market, they’re “a rounding error” when compared to the total market capitalization of bitcoin itself, Mercer added.

Still, he noted, ETF flows seemed to be dictating bitcoin’s price at present. “One thing’s for sure: the bitcoin price couldn’t rally when you saw outflows in the ETFs,” Mercer said. — Reuters

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Thu, 28 Mar 2024 18:55:36 +0800 exchange-traded funds,bitcoin trading
<![CDATA[Britain’s Thames Water sees financial crisis worsen]]> https://www.malaymail.com/news/money/2024/03/28/britains-thames-water-sees-financial-crisis-worsen/126043 https://www.malaymail.com/news/money/2024/03/28/britains-thames-water-sees-financial-crisis-worsen/126043 Malay Mail

LONDON, March 28 — Debt-plagued Thames Water revealed today that it failed to raise a major cash injection from shareholders, blaming industry regulations that made its rescue plan “uninvestable”.

Britain’s biggest water supplier said in a statement that £500 million (RM2.9-billion) of new equity will “not be provided by Thames Water’s shareholders” this month.

The company added it was in “ongoing” talks with industry regulator Ofwat over a plan that is “affordable for customers, deliverable and financeable for Thames Water, as well as investible for equity investors”.

The cash represented most of a £750-million funding lifeline that had been previously agreed with investors last July to stay afloat.

Britain’s Press Association newswire reported Ofwat had refused to bow to Thames Water’s demands for concessions, which it said included a 40-per cent jump in water bills that would worsen the country’s cost-of-living crisis.

Other concessions would reportedly include an easing in capital spending requirements and leniency over regulatory penalties.

In a separate statement, Ofwat said Thames Water needed to seek other solutions for its finances, but stressed that customers would be unaffected.

“Safeguards are in place to ensure that services to customers are protected regardless of issues faced by shareholders of Thames Water,” said an Ofwat spokesperson.

“Today’s update... means the company must now pursue all options to seek further equity for the business to turn around the performance of the company for customers.”

Thames Water, which supplies more than 15 million homes and businesses in London and elsewhere in southern England, is saddled with debts of almost £15 billion that have placed it at risk of nationalisation.

The group has also faced fierce criticism over missing targets to reduce leaks and slash sewage discharges into rivers, despite major infrastructure investment.

A record number of storm drains overflowed with sewage last year in England, official statistics showed yesterday, angering campaigners wanting cleaner rivers and seas.

Environmentalists have increasingly voiced outrage at the rise in pollution on the UK’s beaches and waterways, and have pointed the finger at privatised water companies. — AFP

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Thu, 28 Mar 2024 18:30:27 +0800 Thames Water,britain,united kingdom UK,financial crisis
<![CDATA[Video game giant Embracer sells ‘Borderlands’ maker to Take-Two]]> https://www.malaymail.com/news/money/2024/03/28/video-game-giant-embracer-sells-borderlands-maker-to-take-two/126040 https://www.malaymail.com/news/money/2024/03/28/video-game-giant-embracer-sells-borderlands-maker-to-take-two/126040 Malay Mail

STOCKHOLM, March 28 — Swedish video game group Embracer said today it was selling Gearbox Entertainment, the developer of the popular first-person shooter franchise Borderlands”, to US company Take-Two for US$460 million (RM2.1 billion).

Embracer chief executive Lars Wingefors said the sale, to be completed by the end of June, was “an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow.”

The sale would reduce the company’s net debt by around US$300-327 million, the group said in a statement.

Gearbox will join a Take-Two line-up that includes the likes of Grand Theft Auto maker Rockstar Games and 2K, the studio behind NBA 2K.

Embracer, which also owns the Tomb Raider licence, acquired Gearbox in February 2021 in a deal potentially worth up to US$1.4 billion as part of an acquisition spree that lasted several years.

The Swedish firm said it was now divesting Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec and game titles including the space Western Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem.

Embracer will retain selected companies, including Gearbox Publishing San Francisco, as well as the publishing rights to the Remnant franchise, Hyper Light Breaker and other unannounced game releases.

All of its retained assets will be integrated into other parts of Embracer Group, it said.

In June 2023, the Swedish firm announced a vast restructuring programme which included the closing of studios and cancelling game projects.

The restructuring programme was meant to transform the company “from our current heavy-investment mode to a highly cash-flow generative business,” Wingefors said when it was announced.

Earlier this month, Embracer announced it was ceasing all Russian operations with the sale of US-based subsidiary Saber Interactive, which controls several game development studios in Russia and Eastern Europe. — AFP

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Thu, 28 Mar 2024 18:13:54 +0800 Borderlands,Embracer,Gearbox Entertainment,Take-Two,video games companies
<![CDATA[Sterling bows to dollar strength after UK GDP data]]> https://www.malaymail.com/news/money/2024/03/28/sterling-bows-to-dollar-strength-after-uk-gdp-data/126039 https://www.malaymail.com/news/money/2024/03/28/sterling-bows-to-dollar-strength-after-uk-gdp-data/126039 Malay Mail

LONDON, March 28 — The pound eased today after data confirmed the UK economy entered recession in the second half of last year and as the dollar put on a display of broad-based strength as the month and the quarter end.

Action in the currency market has been dominated this week by the prospect of the Bank of Japan intervening to buy the yen, which has hit its weakest since 1990 against the dollar.

Sterling was last down 0.2 per cent, but was still on course for a 0.2 per cent gain this week against the dollar, ahead of key US inflation data tomorrow. The pound held steady against the euro, which traded at 85.63 pence.

The pound also fell against the yen, dropping 0.24 per cent to 190.79 yen, having hit its highest against the Japanese currency since August 2015 this week.

On the corporate front, Thames Water, Britain’s largest utility, faced a new crisis after shareholders said they would not offer further funding.

British finance minister Jeremy Hunt said the government would continue to monitor Thames Water “very carefully” and that it was still solvent.

The government said last year it was ready for any outcome, including temporary state ownership, if needed, although today’s development had no direct impact on sterling.

“I don’t think it’s a huge story. The move we’re seeing across the board is pretty broad-based dollar strength and cable is bearing the brunt of that,” Pepperstone strategist Michael Brown said. “It’s pretty much in line with the others so I wouldn’t be too concerned about that.”

On the macro front, UK gross domestic product shrank by 0.1 per cent in the third quarter and by 0.3 per cent in the fourth quarter, unchanged from preliminary estimates, the Office for National Statistics said.

Markets had already factored in a mild recession late last year and the numbers did not trigger an outsized reaction in the pound, or have any impact on expectations for monetary policy.

Last week, the Bank of England opened the door to the prospect of a cut in interest rates, which has prompted a rally in UK government bonds, but undermined sterling.

Two-year gilts, the most sensitive to changes in rate expectations, have fallen 25 basis points in March, heading for their first monthly drop since November.

Futures markets show traders see a roughly 20 per cent chance of the BoE cutting rates at its next meeting in May, although June’s meeting is still the most likely point, with a 55 per cent chance. — Reuters

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Thu, 28 Mar 2024 18:06:17 +0800 pound sterling
<![CDATA[Malaysia-China Summit 2024 set to welcome 10,000 visitors, 500 exhibitors]]> https://www.malaymail.com/news/money/2024/03/28/malaysia-china-summit-2024-set-to-welcome-10000-visitors-500-exhibitors/126038 https://www.malaymail.com/news/money/2024/03/28/malaysia-china-summit-2024-set-to-welcome-10000-visitors-500-exhibitors/126038 Malay Mail

KUALA LUMPUR, March 28 — Events and exhibitions organiser Qube Integrated Malaysia Sdn Bhd expects to welcome 10,000 visitors and at least 500 exhibitors at the Malaysia-China Summit 2024 (MCS 2024) scheduled for December 17-19, 2024.

Executive chairman Richard Teo said the summit has garnered significant interest among Chinese businesses, indicating a substantial presence from China alongside other delegations from Malaysia and Asean countries.

This engagement is central for the summit, which will host the largest trade and investment exposition, marking the 50th anniversary of Malaysia-China bilateral ties, together with a leadership conference.

“We have received many strong interest and enquiries to participate in MCS 2024. The response is very encouraging and gaining momentum,” he said in a statement today.

According to Qube, MCS 2024 is organised in association with the Malaysia External Trade Development Corporation (Matrade) and will be held at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur.

Following a successful networking session in Beijing yesterday, interest among large corporations and small to medium sized enterprises (SMEs) in China has surged, indicating a robust intention to participate.

In a keynote address at the networking session, Malaysian Ambassador to China, Datuk Norman Muhamad, said the enthusiastic participation of Chinese businesses reflects the deep mutual interest in fostering a future where both nations thrive together.

“The doors are wide open for Chinese industries to engage deeply with Malaysian counterparts.

“The priority sectors of our economy are ripe with opportunity, and through mutual collaboration, we can achieve even more remarkable growth,” he added.

Meanwhile, Matrade Beijing trade commissioner Niqman Rafaee M. Sahar said China has remained Malaysia’s largest trading partner for the past 15 consecutive years, representing 17.1 per cent of Malaysia’s total trade with the world. As of February 2024, total trade volume between the two nations has reached an impressive US$15.52 billion (RM73 billion).

“Apart from traditional sectors and manufacturing goods such as electrical and electronics, chemicals, liquefied natural gas, and others, there is a vast horizon to explore in areas of connectivity, future growth sectors, renewable, green and sustainable initiatives, and ICT and digital-related services,” he said.

Themed ‘Prosperity Beyond 50’, MCS 2024 aims to foster growth and sustainability through its five thematic pillars namely ‘Future Tech, Future Knowledge and Experience, Future Mobility and Connectivity, Future Opportunity and Future Growth’.

These cover a broad spectrum ranging from technology, professional services, and economic zones to manufacturing sectors, reflecting the depth of bilateral cooperation opportunities. — Bernama

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Thu, 28 Mar 2024 17:57:28 +0800 Qube Integrated Malaysia Sdn Bhd,Malaysia-China Summit 2024
<![CDATA[Foreign firms’ losses from exiting Russia top US$107b]]> https://www.malaymail.com/news/money/2024/03/28/foreign-firms-losses-from-exiting-russia-top-us107b/126037 https://www.malaymail.com/news/money/2024/03/28/foreign-firms-losses-from-exiting-russia-top-us107b/126037 Malay Mail

LONDON, March 28 — The corporate exodus from Russia since its 2022 invasion of Ukraine has cost foreign companies more than US$107 billion (RM506 billion) in writedowns and lost revenue, a Reuters analysis of company filings and statements showed.

The volume of losses have increased by one third since the last tally in August last year, underscoring the scale of the financial hit to the corporate world from Moscow’s invasion, as well as highlighting the sudden loss of Western expertise from Russia’s economy.

“As Russia’s invasion continues amid faltering Western military aid, and the granularity of Western sanctions regimes increases, companies still aiming to exit Russia will likely face further difficulties and have to accept greater writedowns and losses,” said Ian Massey, Head of Corporate Intelligence, EMEA, at global risk consultancy S-RM.

President Vladimir Putin, fresh from securing re-election in a landslide victory widely condemned in the West as unfair and undemocratic, now has a renewed mandate to pursue further isolation from the West, including through additional asset seizures and political pressure, Massey added.

Moscow demands discounts of at least 50 per cent on foreign asset sales and has steadily tightened exit requirements, often accepting nominal fees as little as one rouble.

So far this year, sales of assets owned by Shell, HSBC, Polymetal International and Yandex NV have been announced, totalling nearly US$10 billion and at discounts as high as 90 per cent. Last week, Danone said it received regulatory approvals to dispose of its Russian assets, taking a total loss of US$1.3 billion.

About 1,000 companies have exited. Austrian brickmaker Wienerberger sold its Russian factories and exited the market, the RBC daily reported on Thursday.

But hundreds of companies including French retailer Auchan and Benetton are still operating or have put business on hold there, according to analysis by Yale School of Management.

A Russian national tricolor flag tops the State Duma building, the lower house of Russia's parliament, in Moscow March 27, 2024. — AFP pic
A Russian national tricolor flag tops the State Duma building, the lower house of Russia's parliament, in Moscow March 27, 2024. — AFP pic

Russian retaliation

Western nations froze around US$300 billion of the Bank of Russia’s gold and foreign exchange reserves after Russia’s invasion. Germany has nationalised Gazprom’s Germania plant, renaming it Sefe, and placed Rosneft’s Schwedt refinery under German trusteeship.

Russia has promised to retaliate against EU proposals to redistribute billions of euros in interest earned on its frozen assets, warning of catastrophic consequences and saying any attempt to take its capital or interest is “banditry”.

Western banks, too, are concerned of the legal wranglings any confiscation may spawn.

“There are no Western assets in Russia that can be considered safe or ringfenced so long as the Kremlin continues to wage war,” Massey said.

Moscow has already taken temporary control of assets owned by several Western companies including Fortum, Carlsberg, OMV and Uniper.

Russia’s state RIA news agency calculated that the West stood to lose assets and investments worth at least US$288 billion if Moscow were to retaliate.

It was based on data which it said showed that direct investment by the European Union, the G7 nations, Australia and Switzerland in the Russian economy at the end of 2022 totalled US$288 billion.

It said EU nations held US$223.3 billion of the assets, of which US$98.3 billion was formally held by Cyprus, US$50.1 billion by the Netherlands and US$17.3 billion by Germany.

Reuters could not verify the data cited by RIA.

But Moscow’s hardline approach inflicts damage on Russia, too.

Lawyer Jeremy Zucker, a sanctions expert, said a surprisingly large number of his firm’s clients across a wide range of industries had decided to exit Russia entirely and would likely be reluctant to return even after hostilities end.

As a result, meaningful technologies have left the country and Russia may no longer be able to support certain high-tech production, said Zucker, chair of US law firm Dechert’s national security practice.

“It certainly suggests to me a meaningful degree of injury to the economy,” he told Reuters.

Key assets

A 2022 decree bans investors from “unfriendly” countries — those that have imposed sanctions on Russia over its actions in Ukraine — from selling shares in key energy projects and banks without explicit presidential approval.

Meanwhile, many producers of everyday staples and consumer goods have refrained from entirely leaving Russia, arguing that everyday people in Russia rely on their products.

Companies still operating or doing business in Russia include Mondelez International PepsiCo, Auchan, Nestle, Unilever and Reckitt. Others, including Intesa Sanpaolo, are facing bureaucratic hurdles as they try to leave. — Reuters

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Thu, 28 Mar 2024 17:47:37 +0800 russia,russia exit,companies,losses,multinationals
<![CDATA[UK economy went into recession last year, data confirms]]> https://www.malaymail.com/news/money/2024/03/28/uk-economy-went-into-recession-last-year-data-confirms/126036 https://www.malaymail.com/news/money/2024/03/28/uk-economy-went-into-recession-last-year-data-confirms/126036 Malay Mail

LONDON, March 28 — Britain’s economy entered a shallow recession last year, official figures confirmed today, leaving Prime Minister Rishi Sunak with a challenge to reassure voters that the economy is safe with him before an election expected later this year.

Gross domestic product shrank by 0.1 per cent in the third quarter and by 0.3 per cent in the fourth, unchanged from preliminary estimates, the Office for National Statistics (ONS) said today.

The figures will be disappointing for Sunak, who has been accused by the opposition Labour Party — far ahead in opinion polls — of overseeing “Rishi’s recession”.

“The weak starting point for GDP this year means calendar-year growth in 2024 is likely to be limited to less than 1 per cent,” said Martin Beck, chief economic advisor at EY ITEM Club.”

“However, an acceleration in momentum this year remains on the cards.”

Britain’s economy has shown signs of starting 2024 on a stronger footing, with monthly GDP growth of 0.2 per cent in January, and unofficial surveys suggesting growth continued in February and March.

Tax cuts announced by finance minister Jeremy Hunt and expectations of interest rate cuts are likely to help the economy in 2024.

However, Britain remains one of the slowest countries to recover from the effects of the Covid-19 pandemic. At the end of last year, its economy was just 1 per cent bigger than in late 2019, with only Germany faring worse among Group of Seven nations.

The economy grew just 0.1 per cent in all of 2023, its weakest performance since 2009, excluding the peak-pandemic year of 2020.

GDP per person, which has not grown since early 2022, fell by 0.6 per cent in the fourth quarter and 0.7 per cent across 2023.

Sterling was little changed against the dollar and the euro after the data release.

UK recovery begins slowly

The Bank of England (BoE) has said inflation is moving towards the point where it can start cutting rates. It expects the economy to grow by just 0.25 per cent this year although official budget forecasters expect a 0.8 per cent expansion.

BoE policymaker Jonathan Haskel said in an interview reported in Thursday’s Financial Times that rate cuts were “a long way off”, despite dropping his advocacy of a rise at last week’s meeting.

Thursday’s figures from the ONS also showed 0.7 per cent growth in households’ real disposable income, flat in the previous quarter.

Thomas Pugh, an economist at consulting firm RSM, said the increase could prompt consumers to increase their spending and support the economy.

“Consumer confidence has been improving gradually over the last year ... as the impact of rising real wages filters through into people’s pockets, even though consumers remain cautious overall,” Pugh said.

Britain’s current account deficit totalled £21.18 billion (RM126.3 billion) in the fourth quarter, slightly narrower than a forecast of £21.4 billion shortfall in a Reuters poll of economists, and equivalent to 3.1 per cent of GDP, up from 2.7 per cent in the third quarter.

The underlying current account deficit, which strips out volatile trade in precious metals, expanded to 3.9 per cent of GDP. — Reuters

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Thu, 28 Mar 2024 17:37:33 +0800 Britain,united kingdom UK,UK economy,UK recession
<![CDATA[Malaysia Productivity Corp: Academy in Industry programme able to produce more skilled workers to boost country’s productivity]]> https://www.malaymail.com/news/money/2024/03/28/malaysia-productivity-corp-academy-in-industry-programme-able-to-produce-more-skilled-workers-to-boost-countrys-productivity/126034 https://www.malaymail.com/news/money/2024/03/28/malaysia-productivity-corp-academy-in-industry-programme-able-to-produce-more-skilled-workers-to-boost-countrys-productivity/126034 Malay Mail

MELAKA, March 28 — The Academy in Industry (AiI) programme, managed by the Malaysia Productivity Corporation (MPC) in partnership with local industry players, can play a crucial role in producing a skilled workforce capable of addressing industry needs and boosting the country’s productivity.

MPC director-general Zahid Ismail said that to date, 2,000 industries or companies have partnered with MPC through the AiI programme, offering job opportunities to 2,600 students nationwide in various sectors.

“The training provided by the industry under the AiI programme can help address skills mismatches.

“For example, 200 students who have completed Form Three and Form Five education will soon be placed in the industry after completing training through AiI,” he told reporters after attending an engagement session with industry players in Melaka here today.

Elaborating, Zahid said the AiI programme offers numerous advantages to participating industries by enabling them to attract skilled labour and reduce dependency on foreign workers.

“Under the AiI programme, school leavers undergo training, and upon completion, they will receive a Malaysian Skills Certificate (SKM) from the Skills Development Department,” he said.

Earlier, Zahid said that the engagement session was the MPC’s initial step to encourage industry involvement in the AiI programme.

He said that 30 industries participated in the session to gain further insights into the AiI programme, with MPC expecting approximately half of the attending industries to agree to participate.

Under the AiI programme, participants, whether students or workers, will receive SKM Level 3 certification through the National Dual Training System (SLDN) within a duration ranging from eight to 18 months, depending on the specific skills selected by the industry. — Bernama

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Thu, 28 Mar 2024 17:28:49 +0800 Academy in Industry programme,Malaysia Productivity Corporation,skilled workers
<![CDATA[Asian markets mixed after Fed official floats rate cut delay]]> https://www.malaymail.com/news/money/2024/03/28/asian-markets-mixed-after-fed-official-floats-rate-cut-delay/126030 https://www.malaymail.com/news/money/2024/03/28/asian-markets-mixed-after-fed-official-floats-rate-cut-delay/126030 Malay Mail

HONG KONG, March 28 — Asian investors trod carefully today after a Federal Reserve official floated the idea of delaying or reducing interest rate cuts, while the yen held gains having briefly hit a 34-year low the day before.

A recent market rally has started to peter out as traders assess the outlook for US monetary policy, with a string of above-forecast inflation and economic data leading some to question whether the central bank can stick to its projection of three cuts this year.

Confidence has not been helped by comments from Fed officials in the past week.

Atlanta president Raphael Bostic on Monday reiterated his comments from Friday that he saw only one cut this year, adding that acting too quickly could be disruptive, while governor Lisa Cook said decision-makers should be cautious.

The latest was Fed governor Christopher Waller, who told a conference in New York that “it is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data”.

“We made a lot of headway in reducing inflation in the past year or so, although the readings in the past two months have been disappointing,” Waller said.

“Shorter-term inflation measures are now telling me that progress has slowed and may have stalled. But we will need more data to know that,” he added.

His remarks came ahead of the release tomorrow of the personal consumption expenditures (PCE) index — the Fed’s preferred gauge of inflation — which is expected to show a slight uptick.

Despite the worries, all three main indexes on Wall Street rose, with the S&P 500 clocking another record high.

Asia was mixed, with Hong Kong, Shanghai, Sydney, Mumbai and Wellington rising, while Singapore, Seoul, Bangkok, Taipei and Jakarta fell.

Tokyo was down more than one per cent as the yen stabilises after hitting ¥151.97 (RM4.73) per dollar yesterday, its weakest level since 1990 following comments from a Bank of Japan official warning monetary policy would remain accommodative for some time.

That comment came a week after the bank lifted interest rates for the first time in 17 years as it shifts away from its long-running ultra-loose monetary policy, while talk of the Fed putting off its rate cut has added upward pressure to the greenback.

The slide has fuelled speculation authorities will step in to support the unit, with Vice Finance Minister Masato Kanda warning that he was ready to do whatever was necessary.

“Markets will be braced all day... for BoJ intervention,” said National Australia Bank’s Ray Attrill.

“It’s unlikely anyone will pay ¥152.01 for (a dollar today) because of this risk, but in the absence of intervention before the weekend, we strongly suspect someone will next week.”

London, Paris and Frankfurt all opened higher. — AFP

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Thu, 28 Mar 2024 17:18:57 +0800 Asian markets
<![CDATA[UBS lowers 2023 profit after Credit Suisse fair-value review]]> https://www.malaymail.com/news/money/2024/03/28/ubs-lowers-2023-profit-after-credit-suisse-fair-value-review/126029 https://www.malaymail.com/news/money/2024/03/28/ubs-lowers-2023-profit-after-credit-suisse-fair-value-review/126029 Malay Mail

ZURICH, March 28 — Swiss banking giant UBS said today its 2023 net profit was slightly lower than previously stated after the estimated fair value of its Credit Suisse acquisition was reduced.

UBS had reported a US$29 billion (RM137 billion) annual profit in February due to the difference between the value of the assets obtained in the Credit Suisse deal and the discount price of US$3.25 billion it paid for the country’s second biggest bank.

In its annual results published today, UBS said the fair-value estimate has been adjusted by US$1.2 billion, decreasing the “negative goodwill” — or bargain purchase — to US$27.7 billion.

This led UBS to revise its 2023 net profit to US$27.8 billion.

UBS was strongarmed by the Swiss government to buy Credit Suisse last year over concerns that its troubled rival might go bankrupt and spark a global financial crisis.

UBS brought back Sergio Ermotti, who led the bank between 2011 and 2020, to take the helm as chief executive and oversee the complex absorption of Credit Suisse.

Ermotti was paid 14.4 million Swiss francs (RM75.2 million) between his return in April 2023 and December that year, according to the annual report. — AFP

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Thu, 28 Mar 2024 17:11:50 +0800 UBS,Credit Suisse
<![CDATA[MDEC CEO: New tax incentive for Malaysia Digital status companies]]> https://www.malaymail.com/news/money/2024/03/28/mdec-ceo-new-tax-incentive-for-malaysia-digital-status-companies/126027 https://www.malaymail.com/news/money/2024/03/28/mdec-ceo-new-tax-incentive-for-malaysia-digital-status-companies/126027 Malay Mail

PUTRAJAYA, March 28 — The Malaysia Digital Economy Corporation (MDEC) will introduce a new tax incentive for Malaysia Digital (MD) status companies and existing Multimedia Super Corridor (MSC) status companies.

MDEC chief executive officer Mahadhir Aziz said the tax incentive to be announced in May, will be for digital initiatives in intellectual property (IP) and non-IP, and also in the form of investment tax allowance incentives.

“These incentives will be jointly announced with the Ministry of Digital, the Finance Ministry and the Investment, Trade and Industry Ministry,” he said in a statement today on MDEC’s aspiration for 2024.

On the Malaysia Digital Catalytic Programmes (PeMangkinMD) National e-Invoicing Initiative, he said it aims to empower businesses of all sizes to embrace digitalisation and streamline financial processes and also align with the upcoming National Micro, Small and Medium Enterprises Digitalisation Roadmap (NMD2030).

He added that MDEC will spearhead efforts to promote artificial intelligence adoption in the country and is committed to advancing Malaysia towards becoming a global digital powerhouse, driving innovation and positioning the country as the preferred digital hub of Asean.

Apart from that, he said MDEC is set to organise the Malaysia Digital Expo in October that will showcase cutting-edge digital initiatives and opportunities, as well as participate in the Smart City Expo World Congress in Barcelona in November this year. — Bernama

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Thu, 28 Mar 2024 17:01:09 +0800 Malaysia Digital Economy Corporation,Malaysian companies,Malaysia Digital,tax incentives
<![CDATA[China lifts punitive tariffs on Australian wine]]> https://www.malaymail.com/news/money/2024/03/28/china-lifts-punitive-tariffs-on-australian-wine/126021 https://www.malaymail.com/news/money/2024/03/28/china-lifts-punitive-tariffs-on-australian-wine/126021 Malay Mail

BEIJING, March 28 — China said today it would lift punitive tariffs on Australian wine, as trade ties improve between the two countries after years of tension, with Canberra soon afterwards announcing it would drop its case against Beijing at the World Trade Organisation.

Duties were imposed on key Australian exports such as wine, barley and beef in 2020 after Canberra legislated against overseas influence, barred Huawei from 5G contracts and called for a probe into the origins of the Covid-19 pandemic.

But trade restrictions have tapered since Australia’s centre-left government won election in 2022 and adopted a less confrontational approach.

“In view of changes in the market situation of the relevant wines in China, it is no longer necessary to impose anti-dumping duties and anti-subsidy duties on imports of the relevant wines originating in Australia,” the Chinese commerce ministry said in a statement, adding that the tariffs would be lifted tomorrow.

Tariffs and barriers have already been removed for commodities including Australian coal, timber and barley.

“Based on the proposal from the Ministry of Commerce, the Customs Tariff Commission of the State Council has decided to terminate the imposition of anti-dumping duties on imported wine originating in Australia starting March 29, 2024; after the cessation of anti-dumping duties, no anti-subsidy duties will be levied,” the Chinese ministry said in its statement.

China and Australian foreign ministers this month met in a sign tensions between the countries were improving.

“The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers,” Australian Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Trade minister Don Farrell said in a statement on Thursday.

“The removal of duties means that Australia will discontinue its legal proceedings at the World Trade Organisation,” the politicians said.

The statement added that Canberra would continue to lobby for the remaining trade restrictions to be lifted, which includes rock lobster and beef from some abattoirs.

Before the trade restrictions were imposed, China was the largest destination for Australian bottled wine, accounting for 33 per cent of export revenue in 2020, data from the Australian government shows.

The tariffs added up to 200 per cent to the cost of Australian wine shipped to China, and effectively halted trade worth US$1 billion (RM4.7 billion) a year.

Australian winemakers responded by turning to other Asian markets, including Hong Kong and Thailand.

While bilateral trade has made some recovery, the two countries remain at odds in strategic areas.

Last month, Australia said it had expressed its “outrage” after Beijing handed a suspended death sentence to Chinese-Australian dissident writer Yang Jun.

Overseas, Australia and its allies are seeking to parry China’s expanding reach in the South Pacific.

Canberra and Washington were jolted into action after Beijing signed a secretive security deal with Solomon Islands in 2022.

Australia also supports the United States and Asian countries in opposing Beijing’s sovereignty claims over the South China Sea. — AFP

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Thu, 28 Mar 2024 16:54:07 +0800 australian wine,China tariffs,Australia
<![CDATA[PNB declares income distribution of 5.25 sen for ASB 2 and 4.75 sen for ASM]]> https://www.malaymail.com/news/money/2024/03/28/pnb-declares-income-distribution-of-525-sen-for-asb-2-and-475-sen-for-asm/126003 https://www.malaymail.com/news/money/2024/03/28/pnb-declares-income-distribution-of-525-sen-for-asb-2-and-475-sen-for-asm/126003 Malay Mail

KUALA LUMPUR, March 28 ― Permodalan Nasional Bhd’s (PNB) wholly owned unit trust management company Amanah Saham Nasional Bhd (ASNB) has declared an income distribution of 5.25 sen per unit for Amanah Saham Bumiputera 2 (ASB 2) for the financial year ending March 31, 2024.

The total payout amounts to RM670 million and will benefit 552,297 million ASB2 unitholders, it said in a statement today.

The fund manager has also declared a 4.75 sen per unit income distribution worth RM1.33 billion for Amanah Saham Malaysia (ASM) for the financial year ending March 31, 2024, benefiting 699,807 unitholders.

According to PNB, ASB 2 recorded a net realised income of RM659.95 million as of March 25, 2024, while ASM recorded RM1.42 billion net realised income.

“Both funds have sourced their earnings from realised gains and dividend income from both local and global equity investments amid a volatile backdrop of elevated inflation and growing economic downturn concerns.

“The funds are also reaping the rewards of diversification into other asset classes such as real estate and private investment, with a greater emphasis on fixed income which provides stable recurring income to the funds,” it said.

PNB said the distributions of ASB 2 and ASM translate to total returns of 5.25 per cent and 4.75 per cent respectively, both outperforming the benchmark of Maybank’s 12-month fixed deposit at 2.84 per cent by 241 basis points for ASB 2 and 191 basis points for ASM.

“The computation of income distribution for ASB 2 and ASM is based on the average minimum monthly balance held throughout the financial year of each fund.

“The distribution declared by these funds will be automatically reinvested into unitholders’ accounts on April 1, 2024,” it said.

Transactions for ASB 2 and ASM at ASNB branches and agents, including all online channels and Internet banking, will be suspended temporarily from March 29 to 31, 2024 to facilitate the computation of the income distribution.

Unitholders may resume transactions at myASNB portal or via myASNB mobile application, or at any ASNB branches or agents nationwide on April 1, 2024. ― Bernama

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Thu, 28 Mar 2024 14:01:48 +0800 Permodalan Nasional Bhd PNB,asb 2,asm
<![CDATA[Crypto fraudster Bankman-Fried faces sentencing]]> https://www.malaymail.com/news/money/2024/03/28/crypto-fraudster-bankman-fried-faces-sentencing/125976 https://www.malaymail.com/news/money/2024/03/28/crypto-fraudster-bankman-fried-faces-sentencing/125976 Malay Mail

NEW YORK, March 28 ― Disgraced cryptocurrency wunderkind Sam Bankman-Fried is set to be sentenced today following his conviction in one of the biggest financial fraud cases in history.

US prosecutors are seeking a prison term of 40-50 years after a New York jury found Bankman-Fried, known by his initials SBF, guilty in November following a five-week trial that probed the one-time high roller's spectacular fall.

Calling Bankman-Fried's seven-count conviction reflective of the defendant's “unmatched greed and hubris,” the government's sentencing request argues for significant jail time in light of fraud it estimates at more than US$10 billion (RM47.3 billion).

Moreover, a lengthy sentence is necessary to “protect the public,” argued US Attorney Damian Williams, who characterized Bankman-Fried as an “adept” spin doctor capable of additional malfeasance.

If quickly freed, “it is realistic that he will settle on a narrative, lean into it, and convince other people to part with their money based on lies and the promise of false hope,” Williams said in a 113-page legal filing, accompanied by testimonials from dozens of victims.

Calling the government's proposed sentence “barbaric,” Bankman-Fried's attorneys depicted their client as a diligent young man motivated by philanthropy who got in over his head.

Their portrayal is similar to the one SBF's defence presented at trial ― which was quickly rejected by jurors after just five hours of deliberation.

Bankman-Fried, 32, should serve about six years in prison, a sentence “that returns Sam promptly to a productive role in society,” said attorneys led by Marc Mukasey.

The final sentence will be meted out by US District Judge Lewis Kaplan. Bankman-Fried will be given an opportunity to address the court prior to sentencing.

FTX Implosion

A graduate of the Massachusetts Institute of Technology and a billionaire before the age of 30, Bankman-Fried conquered the crypto world at breakneck speed, turning FTX, a small start-up he cofounded in 2019, into the world's second largest exchange platform.

But in November 2022, the FTX empire imploded, unable to cope with massive withdrawal requests from customers panicked to learn that some of the funds stored at the company had been committed to risky operations at Bankman-Fried's personal hedge fund, Alameda Research.

During the trial, some of Bankman-Fried's closest associates said that he was key to all the decisions that saw US$8 billion vanish from FTX.

This group included Caroline Ellison, the former Alameda CEO and Bankman-Fried's on-and-off-again girlfriend, who testified that Alameda had stolen “around US$14 billion” from FTX clients and that Bankman-Fried “directed me to commit those crimes.”

Filings from the prosecution and defence offered starkly different takes on Bankman-Fried, the son of two well regarded law professors at tony Stanford University.

“The lack of contrition is galling,” said Williams, who took issue with the image of Bankman-Fried as “selfless” and “altruistic,” as championed by the defence, noting he used funds for “luxury” real estate, donations to rub shoulders with political leaders, a Super Bowl television ad and “access to celebrities.”

The defence's statement describes Bankman-Fried as “wracked” with remorse over the implosion of FTX.

Recovered funds

Bankman-Fried's attorneys also pointed to statements from FTX's current leaders expressing confidence that FTX customers and creditors would get back their money, saying in the brief, that “the harm to customers, lenders and investors is zero.”

That argument drew a scathing response from FTX Trading Chief Executive John Ray, who said ongoing recoveries of ill-gotten gains do not make up for fraud.

“That things he stole... were successfully recovered through the efforts of a dedicated group” of professionals “does not mean the things were not stolen,” Ray said in a letter to the court.

“What it means is that we got some of them back.”

The recoveries are not likely to significantly affect the sentencing, said Jacob Frenkel, an attorney at Dickinson Wright who previously worked at the Department of Justice and the Securities and Exchange Commission.

“The sentencing determinant is not about a speculative return of funds,” Frenkel said. “It is about what was the fraud when he was convicted.”

Frenkel said he would be “shocked” by a sentence under 20 years, in part because of the need for the judge to send a strong signal that fraud in the emerging cryptocurrency sector will be taken as seriously as any other. ― AFP

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Thu, 28 Mar 2024 10:28:29 +0800 Sam Bankman-Fried
<![CDATA[Lufthansa, ground staff reach pay deal after strikes]]> https://www.malaymail.com/news/money/2024/03/28/lufthansa-ground-staff-reach-pay-deal-after-strikes/125961 https://www.malaymail.com/news/money/2024/03/28/lufthansa-ground-staff-reach-pay-deal-after-strikes/125961 Malay Mail

FRANKFURT, March 28 ― German airline giant Lufthansa and a union representing ground staff said yesterday they had reached an agreement on pay after a lengthy dispute, averting the threat of Easter holiday strikes.

The deal between the carrier and the powerful Verdi union came after ground staff staged walkouts in recent months, leading to widespread disruption for air travellers.

After a series of direct pay talks failed, Lufthansa and Verdi entered arbitration this week, leading to Wednesday's breakthrough.

Details of the deal were not immediately released.

But Lufthansa personnel chief Michael Niggemann said it was a “good compromise with substantial salary increases over the term of the agreement”.

Verdi had been seeking pay rises of 12.5 per cent for the roughly 25,000 Lufthansa ground staff that it represents.

The ground staff staged their latest strike in early March, with a two-day walkout that led to the cancellation of up to 90 percent of Lufthansa's flights.

They also walked out in February.

Lufthansa cabin crew, who went on strike at major airports earlier this month, have still not reached a pay deal with the carrier.

But news outlet Spiegel reported that the airline group and the UFO union, which represents cabin crew, are due to enter arbitration after the Easter break.

The airline group earlier this month warned of the damaging impact of the wave of recent strikes, saying they would contribute to heavier losses in the first quarter compared to last year.

Lufthansa also faced a wave of strikes in 2022 by staff pushing for higher wages, leading to them winning hefty wage increases.

The group ― whose carriers include Lufthansa, Eurowings, Austrian, Swiss and Brussels Airlines ― had to be bailed out by the German government during the coronavirus pandemic.

But it has since bounced back strongly as travel has recovered, prompting unions to argue the airline is not passing on enough of its bumper earnings to its staff in the form of pay rises.

Yesterday's announcement represents some more much-needed good news for employers in Europe's top economy, who have faced a tough season of wage negotiations and strikes across many sectors.

This week, German rail operator Deutsche Bahn and union GDL struck an agreement that will see train drivers work a shorter week, ending a months-long row that caused a series of crippling strikes.

The strikes have added to an already gloomy economic picture, with the German economy shrinking 0.3 per cent in 2023. ― AFP

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Thu, 28 Mar 2024 08:59:32 +0800 Lufthansa
<![CDATA[Global shares cautiously climb; Japan officials rattle sabers at yen shorts]]> https://www.malaymail.com/news/money/2024/03/28/global-shares-cautiously-climb-japan-officials-rattle-sabers-at-yen-shorts/125951 https://www.malaymail.com/news/money/2024/03/28/global-shares-cautiously-climb-japan-officials-rattle-sabers-at-yen-shorts/125951 Malay Mail

NEW YORK, March 28 ― Global share markets advanced cautiously yesterday, led by an early rally in Japanese stocks as the yen sagged to its weakest since 1990, prompting intervention fears, while benchmark US Treasury yields fell after a strong seven-year note auction.

Trading was subdued with the dollar stuck in a narrow range below its overnight high against the yen as markets marked time ahead of Friday's much-anticipated US inflation report, that few will be around to digest at the start of the long Easter weekend in the United States and many other countries.

The yen, which has lost more than 7 per cent in value against the dollar this year already, weakened as far as 151.975 to the dollar, prompting Japan's three main monetary authorities to hold an emergency meeting on Wednesday to discuss the currency.

Market participants took this as a signal officials were ready to intervene in the market to stop what they described as disorderly and speculative moves in the yen, a carry-trade favourite for speculators to short against other currencies because of its lower interest rates.

“The news this morning was the Japanese yen. They're always concerned, even well before this for so many years, about hedge funds coming in and taking advantage of the yen,” said Quincy Krosby, chief global strategist at LPL Financial, in Charlotte, NC. “So they typically come out with the warning to notify the market that 'we could come in and thwart your ambition in our currency market'.”

The yen has been sliding despite the Bank of Japan's first interest rate hike for 17 years last week, as traders expect very gradual tightening and possible delays to long-expected Federal Reserve easing.

BoJ board member Naoki Tamura reinforced the dovish outlook on further tightening yesterday, saying the central bank should “move slowly but steadily toward policy normalisation”.

The stocks rally ramped up late in Wall Street's session. The Dow Jones Industrial Average rose 1.22 per cent, to end at 39,760.08, outpacing the other main indexes because of a strong rally in Merck after the US Food and Drug Administration approved its therapy for adults suffering from a rare lung condition.

The S&P 500 gained 0.86 per cent, closing at 5,248.49 and the Nasdaq Composite gained 0.51 per cent to 16,399.52.

The Nikkei closed 0.9 per cent higher. MSCI's gauge of stocks across the globe rose 0.59 per cent, while Europe's STOXX 600 index added 0.13 per cent.

“It's choppy, directionless trading, and there's a good reason for that: we've hit that time of the quarter when rebalancing flows are impacting the market,” said Tony Sycamore, a strategist at IG.

Another reason is that two key events ― the release of the US Federal Reserve's favoured Personal Consumption Expenditures Inflation Index and public comments from Fed Chair Jerome Powell ― come on Friday, when most markets are closed for a holiday, he added.

Good Friday is a market but not a government holiday in the United States.

Dollar/yen in focus

Against the yen, the dollar eased 0.15 per cent to 151.32. The dollar index was down 0.14 per cent at 104.28, just below Friday's five-week high of 104.49, while the euro was down 0.04 per cent at US$1.0826 (RM5.11).

“If there's any kind of intervention, it only has a significant lasting impact if the direction of travel has already begun to turn,” Guy Miller, chief market strategist at Zurich Insurance Group, said.

US 10-year Treasury yields were 4.6 basis points lower at 4.188 per cent. They had fallen as far as 4.182 per cent, the lowest in two weeks, after the Treasury easily sold US$43 billion of seven-year notes amid expectations that the Federal Reserve will be lowering rates soon.

Kim Rupert, managing director of global fixed income at Action Economics in San Francisco, described the auction as “stellar.”

“It's a good time to pick up some yield,” she said.

Traders are trying to gauge which of the big central banks ― the Fed, ECB or Bank of England ― will be first to cut rates this year.

Meanwhile, Sweden's Riksbank left interest rates unchanged but indicated it was likely to start easing monetary policy in either May or June.

Spot gold rose 0.73 per cent to US$2,194.43 an ounce as it continued to search for a short-term floor following its surge to a record US$2,222.39 last week. US gold futures rose 0.67 per cent to US$2,191.70 an ounce.

Cryptocurrency bitcoin fell 1.11 per cent to US$69,038.01.

Oil fell for a second day after a report that crude stockpiles surged in the US, the world's biggest oil user, and on signs major producers are unlikely to change their output policy at a technical meeting next week.

Brent crude futures settled at US$86.09 per barrel, down 0.19 per cent. US crude futures settled down 0.33 per cent at US$81.35 a barrel. ― Reuters

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Thu, 28 Mar 2024 09:04:53 +0800 global stocks
<![CDATA[J&J can contest evidence linking its talc to cancer, US judge rules]]> https://www.malaymail.com/news/money/2024/03/28/jj-can-contest-evidence-linking-its-talc-to-cancer-us-judge-rules/125944 https://www.malaymail.com/news/money/2024/03/28/jj-can-contest-evidence-linking-its-talc-to-cancer-us-judge-rules/125944 Malay Mail

NEW YORK, March 28 ― Johnson & Johnson will get a new chance to contest the scientific evidence linking talc to ovarian cancer, a federal judge ruled yesterday, potentially disrupting more than 53,000 lawsuits the company is now facing over its talc products.

In a brief written order, US District Judge Michael Shipp in Trenton, New Jersey, who is overseeing the lawsuits that have been consolidated in his court, said recent changes in the law and new scientific evidence require a fresh review of the evidence that linked J&J products to ovarian cancer.

Shipp took over the case in February 2023, after the retirement of former Chief District Judge Freda Wolfson, who had overseen the litigation since 2016.

J&J Worldwide Vice President of Litigation Erik Haas said the company was very pleased by the ruling, and that it intended to “shine a light on some of the made-for-court junk science” used in recent trials.

“The passage of time has only solidified the decades of medicine and science that support Johnson & Johnson's position in these cases,” Haas said in a statement.

J&J has repeatedly denied claims that its baby powder and other talc products cause cancer or contain asbestos, a known cause of mesothelioma.

Leigh O'Dell and Michelle Parfitt, lead lawyers for plaintiffs in the federal litigation, said the scientific evidence that J&J products caused cancer is “stronger than ever.”

“The truth of J&J’s deceptive conduct to hide the presence of carcinogens in talcum powder and mislead the medical and scientific communities has only become clearer over time,” O'Dell and Parfitt said in a statement.

The talc lawsuits had been on hold from 2021 to 2023, while J&J pursued failed efforts to resolve the litigation through the bankruptcy of a subsidiary company, LTL Management.

Trials have since resumed, and the latest case ended in a hung jury on March 5.

J&J will have until July 23 to make renewed arguments about the scientific evidence in the case, according to Shipp's order.

Trials in the talc cases have had a mixed record, with major plaintiff wins including a US$2.1 billion (RM9.9 billion) judgment in 2021 awarded to 22 women with ovarian cancer. A New Jersey appeals court in October threw out a US$223.7 million verdict against the company, finding the testimony of the plaintiffs' expert witnesses unsound.

Product liability lawsuits, like the ones J&J is facing over its talc products, rely on experts to establish that the product is capable of causing the alleged harm. Federal judges decide what expert testimony is allowed at trial, based on whether it meets scientific standards first laid out by the US Supreme Court in its 1993 ruling in Daubert v. Merrell Dow Pharmaceuticals.

So-called “Daubert” decisions on expert testimony can sometimes be major turning points in litigation. For example, drugmakers GSK, Pfizer, Sanofi and Boehringer Ingelheim succeeded in ending 50,000 lawsuits alleging the heartburn drug Zantac caused cancer, after a federal judge in Florida ruled in 2022 that the claims were not backed by sound science.

When Wolfson ruled on the scientific evidence in the J&J cases in 2020, she allowed plaintiffs to present expert testimony that J&J's talc products can cause cancer based on epidemiological studies, as well as testimony that the link could be caused by talc's contamination with asbestos and heavy metals. J&J had sought to sought to bar all of the plaintiffs' experts from testifying, which would have effectively wiped out all the cases in the consolidated litigation.

Shipp's Wednesday order pointed to a December change to the federal rule of evidence governing expert testimony, which emphasised courts' role in vetting experts' conclusions and methodology before allowing them to present evidence to a jury.

J&J said that the rule change would help keep out flawed evidence, while attorneys for talc plaintiffs said that their evidence was strong enough to meet the revised standard. ― Reuters

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Thu, 28 Mar 2024 07:41:48 +0800 Johnson & Johnson,johnson & johnson baby talc
<![CDATA[US stocks close with gains, led by Dow as investors look for rate insight]]> https://www.malaymail.com/news/money/2024/03/28/us-stocks-close-with-gains-led-by-dow-as-investors-look-for-rate-insight/125941 https://www.malaymail.com/news/money/2024/03/28/us-stocks-close-with-gains-led-by-dow-as-investors-look-for-rate-insight/125941 Malay Mail

NEW YORK, March 28 ― US stocks were higher yesterday, with the Dow leading gains and the S&P 500 setting a closing record, paced drugmaker Merck, while investors looked towards the next piece of inflation data and Federal Reserve commentary for signals on the rate path.

Merck & Co advanced 4.96 per cent as the best performer on the Dow after the US Food and Drug Administration approved its therapy for adults suffering from a rare lung condition.

The blue-chip Dow now sits less than 1 per cent away from breaking the 40,000 level for the first time.

Gains on the tech-heavy Nasdaq were held in check, however, by 2.5 per cent decline in AI giant Nvidia, which lost ground for a second straight session. Shares were still up more than 80 per cent on the year, however.

Recent data that showed hotter than expected inflation in the form of consumer prices (CPI) and producer prices (PPI) failed to markedly disrupt market expectations for a rate cut of at least 25 basis points (bps) from the Federal Reserve in June.

The Fed kept its projections for three rate cuts this year intact at its policy meeting last week, which central bank officials have largely stood by this week in comments.

The Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, is due on Good Friday, when the US stock market will be closed.

“The Fed can and should take its time, largely because the economy is affording them that flexibility with the strength that we're seeing, and that premature rate cuts only probably set us up for a more adverse outcome,” said Craig Fehr, head of investment strategy at Edward Jones in St. Louis.

“The real challenge for Fed officials has been massaging and guiding market expectations when they swing too far in one direction or another.”

Later in the day, Fed Board Governor Christopher Waller is expected to speak at the Economic Club of New York later in the day.

The Dow Jones Industrial Average rose 477.75 points, or 1.22 per cent , to 39,760.08, the S&P 500 gained 44.91 points, or 0.86 per cent, to 5,248.49 and the Nasdaq Composite gained 83.82 points, or 0.51 per cent, to 16,399.52.

The gains marked the biggest daily percentage advance for the Dow since December 13.

All three major US stock indexes were poised for quarterly gains, with the S&P on track for its biggest first quarter percentage gain since 2019.

Traders see a 70.4 per cent chance the Fed will begin its easing cycle in June, according to the CME FedWatch Tool.

Each of the 11 major S&P sectors were higher, with rate sensitive utilities and real estate were the best performers, climbing 2.75 per cent and 2.42 per cent, respectively, getting a lift as bond yields eased.

Among individual stocks, Trump Media & Technology Group jumped 14.19 per cent a day after its stellar Nasdaq debut.

On the down side, GameStop, plunged 15.03 per cent after the videogame retailer reported lower fourth-quarter revenue and said it had cut an unspecified number of jobs to reduce costs.

Advancing issues outnumbered decliners by a 4.5-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.68-to-1 ratio.

The S&P 500 posted 62 new 52-week highs and no new lows while the Nasdaq recorded 184 new highs and 79 new lows.

Volume on US exchanges was 10.65 billion shares, compared with the 12.2 billion average for the full session over the last 20 trading days. Activity is expected to lighten ahead of the Friday holiday. ― Reuters

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Thu, 28 Mar 2024 07:31:27 +0800 us stocks,wall street
<![CDATA[Yellen to warn China of industrial oversupply risks]]> https://www.malaymail.com/news/money/2024/03/28/yellen-to-warn-china-of-industrial-oversupply-risks/125939 https://www.malaymail.com/news/money/2024/03/28/yellen-to-warn-china-of-industrial-oversupply-risks/125939 Malay Mail

WASHINGTON, March 28 ― A surge in cheap exports from China in industries like electric vehicles could create an oversupply and hurt economies, US Treasury Secretary Janet Yellen warned in a speech yesterday.

She plans to raise those risks during her next trip to China likely this year, and press Beijing to take “necessary steps to address this issue.”

In her speech in the southern US state of Georgia, Yellen touted the benefits of President Joe Biden's landmark Inflation Reduction Act and highlighted major business investments that have been announced in response.

But she also raised concerns about the impact that China's excess industrial capacity could have on other countries.

Chinese government support in sectors like steel and aluminium in the past has “led to substantial overinvestment and excess capacity that Chinese firms looked to export abroad at depressed prices,” Yellen said.

While this boosted production and employment in China, it “forced industry in the rest of the world to contract,” she added.

“Now, we see excess capacity building in 'new' industries like solar, EVs, and lithium-ion batteries,” Yellen noted.

The fear is that overcapacity could distort global prices and production, impacting companies and staff.

Yellen added that governments and businesses from other countries are also increasingly raising concerns.

“It is important to the president and me that American firms and workers can compete on a level playing field,” said Yellen.

Yellen said she believes excess capacity also poses risks to China's own productivity and economic growth.

In a speech last December, Yellen called for Beijing to shift away from a state-driven approach in economic policy.

US companies have long complained about what they see as an unfair business environment in China.

On Wednesday, the Alliance for American Manufacturing (AAM) urged the US government to help prevent a deluge of Chinese imports.

“We must also ensure that Chinese companies don't simply use our trade partners as a back door to the American market, or to distort it by locating minor operations here dependent on the Chinese supply chain in a way that displaces our emerging industries,” said AAM President Scott Paul. ― AFP

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Thu, 28 Mar 2024 07:24:26 +0800 industrial oversupply risks,Janet Yellen