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Tuesday 31 January 2012

'Growth will be supported by domestic demand'


from Business Times

However, he added that growth momentum in Asia, including Malaysia, would be supported by resilient domestic demand. When commenting on Public Bank's overseas investments, Teh said the bank had hedged its foreign currency exposure. "We are not expected to be susceptible to foreign exchange fluctuations." On home loans, Teh assured investors that the introduction of new preemptive regulatory measures, including the loan-to-value ratio cap on financing of the third residential property and guidelines on responsible financing, were unlikely to impact its growth in the domestic retail operations as its existing stringent lending practices had already incorporated such measures. Public Bank's domestic hire purchase segment is dependent on the growth of the automotive industry in Malaysia. In 2012, the automotive industry is expected to experience minimal to flat growth in vehicle sales. However, Teh said the bank was hopeful of moderate growth and maintaining its lead market share position in the passenger vehicle financing business.

Source

World leaders slam eurozone foot-dragging on debt crisis


AFP - Sunday, January 29, 2012

DAVOS, (AFP) – World economic leaders turned their fire on the eurozone on Saturday at a Davos forum increasingly frustrated by the single currency bloc's struggle to come to grips with its debt crisis.
At the forefront of concerns were write-down talks in Greece, which had dragged on into the weekend and now threaten to overshadow an EU summit on Monday designed to showcase the continent's plans to escape the debt trap.
But senior officials from outside the eurozone also argued that Europe has not got on top of more long-term problems undermining the single currency, and needs to move further and faster in integrating eurozone economies.
"The fact that we're still, at the start of 2012, talking about Greece again is a sign that this problem has not been dealt with," British finance minister George Osborne told a public panel of senior finance officials.
"The danger here is that the tail wags the dog throughout this crisis, in other words the inability to deal with the specific problems in the periphery causes shockwaves across the whole European economy and the world economy."
Canada's central bank chief Mark Carney, who chairs the international bank regulator the Financial Stability Board, said Europe's woes were holding back the recovery and had effectively cut global growth by one percent last year.
European and eurozone officials at the World Economic Forum, an annual get-together of the great and the good in global business and politics, have spent the week attempting to drum up optimism on the debt talks.
But as the talking shop drew to an end, Greek leaders were still in talks with private lenders over the details of a plan to wipe 100 billion euros from their sovereign debt -- and thus avoid a messy default.
The private creditors said Saturday they were close to concluding an agreement next week.
"Further progress was made, building on the understandings reached yesterday (Friday) on the key legal and technical issues," they said in a statement after a two-hour meeting.
Meanwhile, Athens was distracted by another dispute, when European officials leaked the claim that Berlin wants the European Commission to take full charge of the Greek budget and oversee its austerity strategy.
Greek officials reacted with fury at this attack on their sovereignty, and Brussels was forced to concede that, while it would reinforce its "monitoring capacity", final fiscal responsibility would stay with Athens.
The drawn-out debt talks have undermined attempts to contain the crisis and shore up bigger eurozone economies, to the frustration of leaders from the emerging economies and the rest of the developed world.
"You need decisive action. You need overkill. Confidence must come from decisive actions from governments," declared Donald Tsang, chief executive of Hong Kong's autonomous regional administration.
"Two months ago in Greece you could make do with a 20 percent haircut, now even 50 percent is not easy. Maybe 70 percent is needed, so do it quickly. You need resolution and decisiveness."
World Bank chief Robert Zoellick praised the European Central Bank for increasing liquidity for eurozone banks to enable them to buy more sovereign debt, but warned that this could only be a stop-gap measure.
"I'm glad the ECB took action. But this buys time, you still have to act," he said, as the world waits to see if Monday's summit will produce agreement on a new "fiscal compact" setting in stone the bloc's deficit-cutting strategy.
"No-one is immune in the current situation. It's not just a eurozone crisis it's a crisis that could have collateral, spillover effects in the rest of the world," IMF director Christine Lagarde warned delegates.
"Now is the time. There has been a lot of pressure building in order to see a solution come about," she said, urging International Monetary Fund members to give her the 500 billion dollars she needs to stock as a bailout fund.
"And it's for that reason that I'm here, with my little bag, to collect a bit of money," she said, to laughter and applause.
Osborne, a eurosceptic who is glad that Britain stayed out of the euro, nevertheless said he hoped that Europe would overcome its woes.
But in an implicit rebuke for a reluctant Germany, he said this would have to mean "permanent fiscal transfers" between stronger and weaker member states.
"That's what is required to make a single currency work," he said, arguing that Europe will either have to make the ECB its lender of last resort, pool its debt through joint eurobonds or through direct budget transfers.
Demonstrators, including three topless Ukrainian feminists, made a feisty bid to get Davos' attention and demand more focus on the plight of the worst off, but deep snow and a tight security presence limited their numbers.
The Davos forum ends on Sunday, at which point the financial world's eyes will switch to Brussels and Monday's much anticipated EU summit.

Update bunga pasu rumah














Gold Drops From Seven-Week High as Dollar Gains on Greece Talks


January 30, 2012, 4:41 PM EST

By Debarati Roy
Jan. 30 (Bloomberg) -- Gold declined from a seven-week high in New York as the dollar gained after Greece signaled opposition to economic oversight in exchange for aid, lowering demand for the precious metal as an alternative investment.

European leaders won’t finalize Greece’s second aid program today because talks with banks over debt reduction aren’t completed, German Chancellor Angela Merkel said. Greek Finance Minister Evangelos Venizelos yesterday rejected a reported plan to appoint a supervisory commissioner, citing “national dignity.” The dollar gained as much as 0.7 percent against a basket of six currencies.

“People are in a risk-off mode today,” Rick Trotman, a senior research analyst at MLV & Co. in New York, said in a telephone interview. “The dollar’s strength is acting against gold.”

Gold futures for April delivery fell 0.1 percent to settle at $1,734.40 an ounce at 1:38 p.m. on the Comex in New York, declining for the first time in four sessions. Bullion touched $1,743 on Jan. 27, the highest since Dec. 8.

Prices have climbed 11 percent this month, exceeding the 10 percent gain in 2011.

Gold demand in India, the world’s biggest bullion user, may be “very low” in January because of higher prices and the volatile local currency, the Bombay Bullion Association said.

Silver futures for March delivery fell 0.8 percent to $33.527 an ounce, after jumping to $34.015, the highest since Nov. 16. The metal has gained 20 percent this month and is the best performer this year among the 24 commodities tracked by the Standard & Poor’s GSCI index.

On the New York Mercantile Exchange, platinum futures for April delivery declined 0.4 percent to $1,616.30 an ounce, retreating for the first time in four sessions. Palladium futures for March delivery fell 0.2 percent to $688.50 an ounce.

--With assistance from Madelene Pearson in Mumbai and Maria kolesnikova in London. Editors: Millie Munshi, Daniel Enoch

Murdoch staff arrested, office searched in UK probe


AFP - Sunday, January 29, 2012

LONDON, (AFP) - Detectives on Saturday searched the offices of Rupert Murdoch's The Sun and arrested four journalists and a policeman in a widening probe into the bribing of police for information.
The development finally drags Britain's biggest-selling newspaper into the turmoil at Murdoch's empire, after its stablemate the News of the World was shut down in disgrace in July amid a scandal over phone hacking.
Police said they made the arrests after information was provided to police by Murdoch's US-based News Corporation -- in what commentators said was a clear effort by the company to detoxify the brand.
The BBC and the Guardian named the arrested Sun journalists as former deputy editor Fergus Shanahan, former managing editor Graham Dudman, current crime editor Mike Sullivan and current head of news Chris Pharo.
In an email to staff, Tom Mockridge, the chief executive of Murdoch's British subsidiary News International, said Saturday the company had provided legal support to the arrested men.
"Despite this very difficult news, we are determined that News International will emerge a stronger and more trusted organisation," Mockridge wrote in the email, a copy of which was obtained by The Guardian.
"We must all support Dominic (Mohan, the editor of The Sun) who will be leading his staff to deliver, as always, a great paper for Monday and going forward."
Scotland Yard said it had arrested two men aged 49 and 57 in dawn raids at their homes in Essex, east of London, and a man aged 48 at his home in the capital.
A 42-year-old man was later arrested after reporting at a police station.
They were held on suspicion of corruption, aiding and abetting misconduct in a public office and conspiracy in relation to both these offences.
A 29-year-old from the force's Territorial Policing command was arrested at the London police station where he works on suspicion of corruption, misconduct in a public office and conspiracy.
All five were granted bail late on Saturday.
A police statement released earlier said: "The home addresses of those arrested are currently being searched and officers are also carrying out a number of searches at the offices of News International in Wapping, East London.
"Today's operation is the result of information provided to police by News Corporation's Management and Standards Committee.
"It relates to suspected payments to police officers and is not about seeking journalists to reveal confidential sources in relation to information that has been obtained legitimately."
News Corp. confirmed that four of the men arrested either worked or used to work at The Sun.
It said it had set up the committee after the phone-hacking scandal "to undertake a review of all News International titles, regardless of cost, and to proactively cooperate with law enforcement and other authorities if potentially relevant information arose at those titles."
"As a result of that review, which is ongoing, the (committee) provided information to the Elveden investigation which led to today's arrests."
Thirteen people have now been arrested under Operation Elveden, the police investigation into allegations that journalists paid officers for information.
It was sparked by concerns about the working practices of the British press after the News of the World scandal and runs alongside Operation Weeting, the probe into phone hacking under which 17 arrests have so far been made.
The scandal at the News of the World erupted in July when it emerged journalists had listened to the voicemails not just of celebrities and politicians but also a murdered schoolgirl, Milly Dowler.
Amid public outrage, Murdoch closed down the 168-year-old weekly.
The scandal also prompted Prime Minister David Cameron to order a wide-ranging inquiry into the practices and ethics of the press, which began hearings last year.
The Sun has daily sales of more than 2.5 million. It is known for its racy celebrity-driven content and colourful headlines, but also for self-proclaimed influence with the electorate.
Sun editor Mohan told the phone-hacking inquiry earlier this month that he had no knowledge of phone-hacking at the paper and added that the daily could be a "powerful force for good."

DBE major shareholder, Maybank PE in talks today


DBE is controlled by the Ding family, headed by its patron Ding Chong Chow, who is also the founder and executive chairman of the company. The meeting comes just weeks after KN Kenanga Holdings Bhd made a presentation to CI Holdings Bhd group managing director Datuk Johari Abdul Ghani. Kenanga values DBE at 14 sen a share, the company said in a report early this month. "Based on our earnings projections, we reckon that the stock should be valued at 14 sen a share, representing nine times 2012 price-to-earnings ratio," wrote Kenanga's analyst Chan Ken Yew in a report titled "A better future". Two weeks ago, DBE told the stock exchange that it is in discussion with a shareholder of CI Holdings which is at a preliminary stage. Business Times understands that the Maybank PE valuation is slightly higher than the Kenanga offer, and it could lead to DBE being taken private. The offer is said to be in range of between 18 sen and 20 sen a share. Last year alone, several poultry and food makers had underlined plans to take their companies private either by the owners directly or with the help of PE firms. Poultry tycoon Tan Sri Francis Lau Tuang Nguang outlined plans last year to take Leong Hup Holdings, the country's largest integrated poultry operator private, while fellow Johor-based food producer Mamee Double-Decker Bhd was also taken private. "Food business is recession-proof, and PE firms are keen, as they can either relist these firms here or overseas at a later stage," said an analyst. Also, QL Resources Bhd, the biggest producer of surimi, surimi-based products and fishmeal manufacturer in Malaysia, bought a 23.8 per cent stake in the Klang-based poultry company Lay Hong Bhd to help expand its own food business. The biggest privatisation of a food-cum-poultry producer, however, is s unfolding here, with the offer from Johor Corp Bhd and PE firm CVC Capital Partners Asia III Ltd to take QSR Brands Bhd and KFC Holdings Bhd, which also owns the poultry firm Ayamas Bhd private, in a deal valued at RM5.3 billion. There is interest in DBE because the company has cleaned up its balance sheet and debts over the past couple of years and is set to register its first full-year profit in six years for the year ended December 31 2011. Up to the nine months ended September 20 2011, DBE registered a net profit of RM1.194 million. In 2010, it suffered a net loss of RM3.71 million, while in 2009 and 2008, its net loss was at RM2.9 million and RM20.40 million respectively. Apart from the two bidders, Datuk Raymond Chan Boon Siew, the controlling stakeholder of Sagajuta (Sabah) Sdn Bhd, is also said to be interested in DBE.

Source

Record net profit for Public Bank

PUBLIC Bank Bhd recorded an all-time high net profit of RM3.48 billion last year, which is 14.3 per cent more than the RM3.05 billion recorded in 2010, thanks to higher income from its Islamic banking business. This is despite the bank having to contend with operational cost swelling five per cent to RM108.4 million from hiring more people to cope with higher business volume. In its filing to the stock exchange, Public Bank attributed the improved profits to higher net interest and net income from Islamic banking business by nine per cent to RM464.6 million. An eight per cent growth, or RM87.1 million, in net fee and commission income also contributed to the satisfactory bottomline. Public Bank also justified the good performance to lower impairment allowance on loans by 10 per cent to RM65.5 million, despite the 1.5 per cent collective impairment allowance set aside for the strong loan growth. "In view of the Public Bank Group's strong performance for the year, we are pleased to announce a second interim single-tier dividend of 28 sen," said the bank's founder and chairman Tan Sri Dr Teh Hong Piow. "Together with the first interim single-tierdividend of 20 sen that was paid in August last year, the total dividend for 2011 is 48 sen," he said in a statement yesterday. Public Bank's balance sheet growth indicators remained healthy. Gross loans as at the end of 2011 stood at RM177.7 billion, representing a growth of 13.5 per cent from a year ago. Domestic loan book grew at a faster pace of 14.1 per cent. Customer deposits grew by 13.3 per cent to RM200.4 billion as at the end of 2011, while domestic customer deposits grew by 14.7 per cent. As Malaysia's third largest domestic bank by market capitalisation, Public Bank is supported by large domestic depositor base of more than 4.5 million customers. Teh said both fixed and savings deposits grew by 10.4 per cent, outperforming the Malaysian banking industry's growth rate of 9.8 per cent and 7.9 per cent, respectively. Public Bank also continues to command the highest market share for the private sector unit trust business. Teh said the bank's wholly owned unit Public Mutual showed commendable performance by growing its net assets to RM44.8 billion, accounting for an overall market share of 44 per cent. On current outlook for the year, Teh said global economic conditions was likely to be increasingly challenging. However, he added that growth momentum in Asia, including Malaysia, would be supported by resilient domestic demand. However, he added that growth momentum in Asia, including Malaysia, would be supported by resilient domestic demand. When commenting on Public Bank's overseas investments, Teh said the bank had hedged its foreign currency exposure. "We are not expected to be susceptible to foreign exchange fluctuations." On home loans, Teh assured investors that the introduction of new preemptive regulatory measures, including the loan-to-value ratio cap on financing of the third residential property and guidelines on responsible financing, were unlikely to impact its growth in the domestic retail operations as its existing stringent lending practices had already incorporated such measures. Public Bank's domestic hire purchase segment is dependent on the growth of the automotive industry in Malaysia. In 2012, the automotive industry is expected to experience minimal to flat growth in vehicle sales. However, Teh said the bank was hopeful of moderate growth and maintaining its lead market share position in the passenger vehicle financing business.

DRB-HICOM in Volkswagen charm offensive

Business Times understands that the two met key stakeholders of DRB-HICOM, including its top management. "They also reviewed all Proton Holdings Bhd's models," said a source. It is understood that the Volkswagen directors were here to evaluate the possibility of having a collaborative technical agreement on technology transfer with Proton. "This is the first step and I think that there will be many more such meetings before a deal could be struck,"said the source. DRB-HICOM recently bought a 42.7 per cent stake in Proton for RM5.50 a share, valuing the national carmaker at RM3 billion. DRB-HICOM currently assembles VW cars at its manufacturing hub in Pekan, Pahang. Volkswagen, Europe's largest carmaker, eventually plans to use Pekan as its main hub to penetrate the Southeast Asian market. Meanwhile, CIMB said in a report that with the acquisition of Proton, it now valued DRBHICOM shares at RM4.60 each. "With Proton operating at a 50 per cent utilisation rate, DRB-HICOM has the option to allow its foreign partners to use its excess capacity," analyst Lucius Chong said in the report. Chong noted that he would not be surprised if DRB- HICOM were to hive off Lotus. Additionally, the purchase of Proton will also increase DRB-HICOM's revenue and net profit substantially. The CIMB report estimated that for the year ended March 31, 2013, DRB-HICOM was poised to register a revenue of RM18.75 billion and a net profit of RM685.5 million.

Source

Interest in DBE due to clean balance sheet

Also, QL Resources Bhd, the biggest producer of surimi, surimi-based products and fishmeal manufacturer in Malaysia, bought a 23.8 per cent stake in the Klang-based poultry company Lay Hong Bhd to help expand its own food business. The biggest privatisation of a food-cum-poultry producer, however, is s unfolding here, with the offer from Johor Corp Bhd and PE firm CVC Capital Partners Asia III Ltd to take QSR Brands Bhd and KFC Holdings Bhd, which also owns the poultry firm Ayamas Bhd private, in a deal valued at RM5.3 billion. There is interest in DBE because the company has cleaned up its balance sheet and debts over the past couple of years and is set to register its first full-year profit in six years for the year ended December 31 2011. Up to the nine months ended September 20 2011, DBE registered a net profit of RM1.194 million. In 2010, it suffered a net loss of RM3.71 million, while in 2009 and 2008, its net loss was at RM2.9 million and RM20.40 million respectively. Apart from the two bidders, Datuk Raymond Chan Boon Siew, the controlling stakeholder of Sagajuta (Sabah) Sdn Bhd, is also said to be interested in DBE. By Sharen Kaur

Friday 27 January 2012

Monthly, Weekly, Daily, Hourly & By 30 minutes gold price chart 27-01-2012







Japan premier announces sales tax hike plan


AFP - Tuesday, January 24, 2012
by Huw Griffith

TOKYO, (AFP) - Japan's prime minister told parliament Tuesday he will move to double sales taxes, warning that the future of the world's third-largest economy depends on turning the rising tide of public debt.
Yoshihiko Noda has staked his premiership on the issue and in his policy speech opening the new session of the Diet said he would submit legislation by the end of March that will ramp up the cost of everything from rice to Rolexes.
However, underlining the huge task ahead, the Bank of Japan also on Tuesday lowered its growth forecasts for the economy, predicting a contraction in the year to March 31, and slower growth than first tipped in fiscal 2012.
Less than five months into the job, Noda is trying to sell the deeply unpopular tax rise to a sceptical public, and avoid becoming the sixth prime minister in as many years to disappear beneath the waves of Japan's viciously factional politics.
Noda said the country has "no time to spare" in reducing its fiscal burden.
"It's impossible for young people to believe that things will get better tomorrow in a society where debts resting on future generations continue growing," he said.
"It is not too much to say that the revival of hope of the entire society depends on the success of this combined reform.
"This year must be the initial year of Japan's revival. Above all, I aim to break away from a politics that is incapable of decision," Noda said.
With burgeoning pension and social security costs in a country where the population is greying and shrinking, only around 40 percent of what the government spends is currently made up from taxes.
The rest is financed from borrowing, leaving debt at more than double the country's gross domestic product, an eyewatering ratio that dwarfs troubled Greece and will only grow unless more tax revenue is raised, experts warn.
Noda's proposals could boost annual tax receipts by roughly 10 trillion yen ($130 billion), the first step towards Tokyo weaning itself off borrowing.
The government had intended to achieve a primary balance surplus by 2020, but now admits it is unlikely to hit that target.
The plan would see consumption taxes rise to 8.0 percent in April 2014 and to 10 percent in October 2015 "on condition that the economy is going to pick up," Noda said.
The country's March 11 earthquake and tsunami had brought a series of pressing issues to bear, which politicians had a "responsibility" to address, including reform of the tax and social welfare systems, he added.
With the world's finances in dire straits, Japan urgently had to get its own fiscal house in order if it is not to fall victim to "rampaging" financial markets like some European countries have, the premier told lawmakers.
"We have no time to spare for this combined reform in terms of the need for having strong fiscal structure that will not be tossed around by the power of the financial markets," he said.
His proposals have won support from major media, businesses and international organisations, including the International Monetary Fund.
But opinion polls consistently show he has a long way to go to persuade the public of the merits of their coughing up more in an economy struggling to keep its head above the water.
The premier must underscore the seriousness of Japan's predicament to voters, and stress plans to cut government salaries and the size of Japan's bureaucracy, said Tomoaki Iwai, politics professor at Nihon University.
"Only the tax hike has drawn attention," said Iwai. "If he could show that politics is also doing its part to feel the pain and discuss the merits of the policy package, he could lay a case for people to consider."
While highlighting the need to get the country's finances in order, the central bank's prediction for growth over the next two years heaps further pressure on Noda.
The BoJ said it believed the economy would shrink 0.4 percent in the year to March 31, reversing an earlier prediction of a 0.3 percent rise in GDP.
It also said the economy would grow in fiscal 2012, but only by 2.0 percent, less than the 2.2 percent it had originally forecast, amid a "slowdown in overseas economies and the appreciation of the yen."

Thursday 26 January 2012

EU turns screws on Greece, Spain, as recession looms


AFP - Tuesday, January 24, 2012
by Roddy Thomson

European finance ministers on Tuesday ordered Greece and Spain to swiftly get debts under control as a recession threatened to undermine efforts to end a two-year crisis.
Six days before a summit of European Union leaders in Brussels focused on striking deals with Greece's private creditors and political parties, Madrid's struggle to fix its finances and chronic unemployment entered a worrying new phase.
Economic affairs commissioner Olli Rehn said it was "essential" that Spain met the 2012 public deficit target already agreed with EU partners to ensure that debt sustainability was restored "without delay."
The allowed shortfall for this year is 4.4 percent of gross domestic product but with 2011's deficit now set to hit 8.0 percent of GDP, way above the agreed 6.0-percent limit, the target is looking tougher by the day.
While Rehn described the 2011 picture as "regrettable," his remarks amounted to a rejection of a weekend call by Spanish Finance Minister Cristobal Montoro for the target to be eased.
More than five million Spaniards are currently out of work, and nearly half of those under 25 years old are unemployed.
The International Monetary Fund has forecast that Spain's economy will shrink by 1.7 percent this year, while Rehn expected a "moderate recession" across all of Europe.
In a bid to meet the 2012 target, Spanish Prime Minister Mariano Rajoy's right-leaning government has announced tax increases and spending cuts.
Rehn urged Madrid to spell out as soon as possible exactly how it plans to restore fiscal sustainability, and to quickly prepare a 2012 budget while detailing a planned shake-up of rigid Spanish labour laws.
Along with Italy and France, two other major Mediterranean economies, Spain has seen its borrowing costs ease despite a downgrade of nine eurozone economies by the credit rating giant Standard & Poor's.
However, renewed focus on Spanish public finances and a tougher line agreed Tuesday on Hungary's deficit as it tries to secure a new IMF credit line raises the stakes ahead of the EU summit on Monday.
EU officials are to approve a new treaty aimed at imposing tougher fiscal discipline -- although not on Britain, where net debt has now surpassed 1.0 trillion pounds (1.2 trillion euros, $1.55 trillion).
But they might again be caught up in talks on Greece after eurozone finance ministers demanded that Greek political rivals deliver written pledges to reform the nation's economy.
This was made a new condition for EU partners to unlock further aid, just as a cut in Greece's private sector debt appeared to get hung up again.
Banks have refused to accept substantially lower interest rates on replacement bonds to be issued after 100 billion euros is slashed from Greece's total debt of around 350 billion euros.
Finance Minister Evangelos Venizelos said he is trying to get political statements signed by coalition parties before Monday, in an echo of a demand met late last year to obtain an 8.0-billion-euro tranche of loans.
A second, 130-billion-euro rescue package was initially agreed in October, but Greek parties are said to be dragging their heels with an eye on elections -- and Austrian Finance Minister Maria Fekter said: "Only if we have this written statement will there be further aid."
Despite several waves of spending cuts and tax hikes, Greece will likely be pushed to make further efforts including structural reforms to labour and other markets.
"It's quite clear that the implementation in Greece has failed," said Swedish Finance Minister Anders Borg, whose non-euro country took part in the first, 110-billion-euro Greek bailout in 2010.
Private creditors hold about 200 billion euros of the country's debt.
They are being pushed to accept interest rates well below the 4.0 percent they have sought, to cut Greek debt from a massive 160 percent of gross domestic product.
But the banks' chief negotiator has said that Europe and the IMF have to choose between a "voluntary" deal and a default.
Venizelos has said a deal needs to be struck by February 1 for legal contracts to be ready by a February 13 deadline.
Athens faces bond redemptions worth a total 14.4 billion euros on March 20.

Australian regulator files lawsuit against AirAsia


AFP - Tuesday, January 24, 2012

SYDNEY, (AFP) - AirAsia was slapped with a lawsuit by Australian regulators accusing the Asian budget carrier of failing to disclose the full price of fares on its website.
The Malaysia-based airline, which flies international services out of Australia from the Gold Coast, Melbourne and Perth, with Sydney to be added from April, was named in documents lodged at the Federal Court in Melbourne on Tuesday.
The Australian Competition and Consumer Commission, the country's consumer watchdog, claims some fares sold on AirAsia's website do not display prices inclusive of all taxes, duties, fees and other charges.
"Businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price," it said in a media release.
The regulator alleged the fares relate to flights from Melbourne to cities including London, New Delhi, and Hangzhou in China, from the Gold Coast to Ho Chi Minh City and from Perth to places such as Taipei and Phuket in Thailand.
The matter is listed to be heard on March 2 with the watchdog seeking an injunction "to restrain AirAsia from engaging in misleading conduct in the future".
It also wants a court order "that AirAsia publish corrective notices on its websites regarding the conduct".
AirAsia could not immediately be reached for comment.

KAITAN BANGSA DENGAN BISNES (Reblog)

1. Seorang pengerusi badan Kerajaan berkata pembangunan negara ini akan tergendala selagi ada usaha mengaitkan bangsa dengan bisnes.
2. Kita akui yang pengerusi berkenaan mempunyai kebolehan tertentu yang menyebabkan ia dilantik oleh Kerajaan sebagai pengerusi, tetapi orang lain tidak mempunyai sifat tertentu dan masih perlu diberi pertimbangan dalam perniagaan dan lain-lain berasas kepada bangsa mereka.
3. Benarkah pengambilan kira bangsa dalam perniagaan di Malaysia melalui dasar DEB menghalang pertumbuhan ekonominya? Dunia mengakui bahawa Malaysia yang berbilang kaum ini lebih cepat dan tinggi tahap pembangunannya dari negara-negara membangun yang lain yang tidak mempunyai masalah bangsa untuk diambilkira.
4. Memang mungkin jika masalah kaum tidak menghantui Malaysia pertumbuhannya menjadi lebih pesat. Tetapi apabila agihan kekayaan begitu luas di antara kaum, besar kemungkinan permusuhan akan berlaku antara kaum yang miskin dengan kaum yang kaya.
5. Permusuhan ini sudah tentu akan menyebabkan ketegangan dalam masyarakat dan menjadikan negara tidak stabil dan terdedah kepada huru hara dan rusuhan.
6. Keadaan seperti ini akan menghalang pelaburan, dagangan dan perusahaan. Dalam iklim seperti ini ekonomi tidak mungkin tumbuh dengan baik. Pembangunan akan terjejas.
7. Yang jelas ialah mengenepikan masalah bangsa dalam negara berbilang kaum, tidak juga menjamin kepesatan pembangunan.
8. Kata pepatah Melayu, telan mati pak, luah mati emak.
9. Namun adalah lebih baik pembangunan terlewat sedikit daripada kehancuran akibat rusuhan.

600 million new jobs 'needed in next 10 years'


GENEVA, (AFP) – The International Labour Organization on Tuesday released a pessimistic report for the global jobs market in 2012 saying urgent attention is needed to create 600 million new jobs in the next 10 years.
"Despite strenuous government efforts, the jobs crisis continues unabated, with one in three workers worldwide, or an estimated 1.1 billion people, either unemployed or living in poverty," said ILO director-general, Juan Somavia, in the Global Employment Trends 2012 report.
"What is needed is that job creation in the real economy must become our number one priority," he said.
"Whether we recover or not from this crisis will depend on how effective government policies ultimately are."
The report said governments must coordinate and act decisively "to reduce the fear and uncertainty that is hindering private investment so that the private sector can restart the main engine of global job creation."
ILO senior economist Ekkehard Ernst said at a press conference the recovery started in 2009 was short-lived and there were nearly 29 million fewer people in the labour force now than "would be expected based on pre-crisis trends".
"Our forecast has become much more pessimistic than last year, with the possibility of a serious deceleration of the growth rate," he said.
The report refers to "discouraged workers", those who have decided to stop looking for work because they feel they have no chance of finding a job and are considered economically inactive.
"If these discouraged workers were counted as unemployed, then global unemployment would swell from the current 197 million to 225 million, and the unemployment rate would rise from 6 per cent to 6.9 per cent," Ernst said.
Young people continued to be the hardest hit by the jobs crisis.
"Judging by the present course," the report says, "there is little hope for a substantial improvement in their near-term employment prospects."
The ILO says 74.8 million youths aged 15-24 were unemployed in 2011, an increase of more than four million since 2007 in the total global labour force of 3.3 billion.
Globally young people are nearly three times as likely as adults to be unemployed. The global youth unemployment rate, at 12.7 per cent, remains a full percentage point above the pre-crisis level.
Ernst and fellow ILO economist Moazam Mahmood recommended additional public spending "to support both the domestic and global economies."
The report warned that outside of Asia, developing regions have lagged behind developed economies in labour productivity growth, raising the risk of a further divergence in living standards and limiting prospects for poverty reduction.

Source

Khazanah eyes US$3b Int Healthcare listing


KHAZANAH Nasional Bhd, the government's investment arm, is looking at raising more than US$3 billion (RM9.24 billion) from the planned listing of its healthcare subsidiary, Integrated Healthcare Holdings Sdn Bhd (IHH). Business Times also understands that Khazanah had set the second half of the year as the deadline for IHH's initial public offering (IPO). The group has appointed several parties to advise and handle the IPO. At a press conference here yesterday, Khazanah managing director Tan Sri Azman Mokhtar declined to reveal details of the IPO. However, he said it is Khazanah's goal to see IHH listed in 2012. In April last year, Azman reportedly said that IHH would be listed within three years in Singapore or Kuala Lumpur, or possibly via a dual listing on Bursa Malaysia and the Singapore Stock Exchange. At more than US$3 billion, IHH's IPO will be Malaysia's biggest since Petronas Chemicals Bhd's listing in November 2010 which raised US$4.1 billion (RM12.6 billion). Meanwhile, Azman said Khazanah will consult its new Turkish partners to help in the IHH listing. They are Acibadem Group founder Mehmet Ali Aydinlar and private equity fund Abraaj Capital. They own 4.2 per cent and 7.1per cent stakes, respectively, in IHH, after selling their shares in Acibadem Saglik Yatirimlari Holding A.S. (ASYH) to Khazanah and IHH. The listed IHH will have assets of Singapore's Parkway Holdings Ltd, Pantai Hospitals and the International Medical University in Malaysia. The IPO will also include ASYH. The listing of IHH will be in line with the Malaysian government's interest in pushing state entities to divest commercial holdings to attract foreign investors and boost stock market liquidity. "The company will put out the relevant documents in due course," Azman said. Analysts who spoke to Business Times said the timing is right for IHH's listing since Khazanah has added a new chapter to its healthcare portfolio by buying into ASYH. Khazanah owns a 75 per cent direct and indirect stake in ASYH, a Turkish hospital chain that operates 14 hospitals and nine outpatient centres in Turkey. It paid RM3.7 billion for the deal by way of cash and shares. Azman said Khazanah is aiming for IHH to be the world's largest healthcare service provider. Currently, it is among the world's largest healthcare groups. IHH also owns a stake in India's Apollo Hospitals Enterprise Ltd. On whether Khazanah was eyeing a stake in India's Sterling Hospital group, Azman declined to comment. Khazanah has spent US$3.7 billion (RM11.4 billion) on acquisitions of healthcare service providers since 2005, according to Bloomberg data.

Monthly, Weekly, Daily, Hourly, Minute Gold Charts 26-1-2012












Understanding Blood Type


PNB, Liew raise offer for SP Setia to RM3.95 a share

Read more: http://www.btimes.com.my/articles/20120121014327/Article/

The country's largest fund manager has revised upwards its offer price to RM3.95 for every SP Setia share, up from RM3.90 previously. Equally interesting, SP Setia founder Tan Sri Liew Kee Sin will now be joining the governmentlinked asset manager in making the revised offer. In a statement yesterday, SP Setia said PNB and Liew will also now pay 96 sen per SP Setia warrant they do not already own, instead of the earlier 91 sen offered by PNB alone. "The joint offer enables a closure to be arrived at finally on uncertainties over takeover matters. More importantly, it will provide a fresh launching pad for SP Setia to continue pursuing its quest to create greater value to all stakeholders,"Liew said in the statement. As a joint offeror, SP Setia said Liew will not be accepting the revised offer. Instead, he will hold on to his direct eight per cent stake amounting to 158.2 million shares. It also noted that PNB had given Liew an option to sell his stake progessively in tranches after three years at RM3.95 a share. Liew said he is "highly appreciative" of PNB's put option offer as it will enable him to focus on doing his best to grow the underlying value of the company. "After many months' work, I am happy that we have managed to come up with what I believe is a win-win solution for everyone, especially our customers, employees and all shareholders of SP Setia," he added. SP Setia said a management agreement would also be signed between the company, PNB and Liew for the latter to remain as group president and chief executive officer for three years, after the close of the revised offer.

Lotus a drag on Proton

Read more: http://www.btimes.com.my/articles/16prot/Article/

Little-known Abdul Rashid, meanwhile, has been CEO of the group's Pahang outfit HICOM Automotive Manufacturers (Malaysia) Sdn Bhd for the past few years. He is literally responsible for DRB-HICOM's automotive complex in Pekan, which houses production lines of various international brands including Mercedes-Benz, Volkswagen, Suzuki and Isuzu. DRB-HICOM's stake in Proton will rise from zero to 42.7 per cent once the RM1.29 billion share sale deal with Khazanah Nasional Bhd announced on January 16 is completed in two months. The group will fork out a further RM1.7 billion or so under a mandatory general offer for the remaining Proton shares upon completion of the initial deal. Proton has made losses in two of its last five financial years, partially dragged by loss-making British sports car subsidiary Lotus.

Friday 20 January 2012

Media Prima wins a clutch of Asiamoney awards

Read more: http://www.btimes.com.my/articles/20120120003001/Article/

In the latest Asiamoney's Corporate Governance Poll 2011, MPB has also been awarded with joint best company for disclosure and transparency, best company for responsibilities of management and the board of directors, best company for shareholders' rights and equitable treatment, and best company for investor relations, including the joint best investor relations officer. MPB chairman Datuk Johan Jaaffar said: "MPB is very proud to add these Asiamoney awards to our list of other awards, which once again reflects the recognition given by the investment community". The achievement validated the unwavering efforts of the employees, management and directors, he added. "We will continue to excel in the areas of governance and transparency, and to adopt best practices with the ultimate objective of enhancing the shareholders' value," Johan said in a statement yesterday. MPB group managing director Datuk Amrin Awaluddin said: "MPB has been awarded as the best Malaysian company in terms of overall corporate governance and other categories". "We are indeed very proud and honoured that our continuing and concerted efforts to maintain high level standards of corporate governance and investor relations have been duly recognised by investment community." MPB has received several regional recognitions as Malaysia's best mid-capitalised company from Finance Asia, one of Asia's leading financial publishing companies. Recently, the Minority Shareholder Watchdog Group (MSWG) awarded MPB a distinction award based on the Malaysian Corporate Governance Index 2011. The Asiamoney poll invited chief executives officers, chief investment officers and senior executives from fund management and hedge fund companies in the Asia-Pacific region as well as heads of research and senior analysts in securities firms across the region to participate in the poll. The poll required the participants to make their decisions based on areas such as disclosure and transparency, most timely and accurate disclosure on all material matters regarding the corporation, information given in financial reports, and disclosure of corporate governance information. The survey also evaluated companies across the region with the improved levels of transparency, shareholders' rights and improved investor relations over the last 12 months.

(Reblog) EUROPE AND NORTH AMERICA


1. Ever since the Europeans and this includes the Americans, lost to the Eastern countries in the manufactured goods markets, they have switched to the financial market. Through the many products they created in this market they seem to be able to grow and maintain their wealth and prosperity as shown by such indices as the GDP and Per Capita income.
2. But the business is spurious. The financial market is basically about gambling. Ever since America decided that the market should regulate itself, that there should be less Government, all kinds of unacceptable practices have been allowed. Short selling expanded from shares to commodities to currencies, Banks lend more money than they have and allowed highly leveraged borrowings by hedge funds and currency traders. They indulge in sub-prime loans, securing these imprudent lending by mortgaging and insurance.
3. In real business the costs in the European countries are unduly high because of high salaries and wages for workers’ pensions, bonuses, short working hours, long paid holidays, unemployment and other social benefits. The standard of living may be high but European products cannot compete with the products of the East in world markets.
4. The currency trading today, for example is said to be worth four trillion dollars a day, equal to the total productivity of Germany in one year. Whereas producing goods and services by Germany spins off all kinds of supporting and other businesses as well as millions of jobs, currency trading spins off no businesses nor create any real jobs. All the dealing involves only the entry of figures in bank books. The earnings are real enough and can contribute to GDP and Per Capita growth. But the picture of economic growth indicated by these indices is false as the wealth belongs to a very small percentage of the population.
5. The sums involved are however huge, running into hundreds of billions and even trillions of dollars. When the bottom fell out, the losses are equally huge, sufficient to bankrupt even the biggest banks. Even countries can go bankrupt.
6. When you lose money, you become poor. Countries are the same. When they lose money or they borrow beyond their means and cannot pay, they become poor.
7. The problem is an unwillingness to admit that they, the Europeans, the Americans, the icons of the free market and economic prosperity are now poor. As a result all the manoeuvres so far are aimed at staying rich, at maintaining a lifestyle that is untenable.
8. The only real way out is to accept a lifestyle that is associated with lower incomes. But the people are demanding to live the rich life they were used to before. The austerity programs are rejected with demonstrations and strikes. And these simply aggravate the situation.
9. If wages and salaries as well as bonuses and other perks are lowered, then the production of goods and services by the workers would cost less. The goods will be able to compete again in the markets against those of the East. Real businesses would then be able to be resuscitated.
10. At the same time the financial market should be curbed. Operations out of tax havens should not be allowed and all accounts must be submitted to the authorities. Currencies should be pegged to a new independent trading currency based on a specific amount of gold or other precious metal. The fluctuation in value would be minimal, making doing business less uncertain.
11. With the lower cost of production there will be no necessity to outsource in Asia. The industries of Europe would be revived and contribute towards overcoming unemployment and early settlement of debts. Real wealth would be generated.
12. The Europeans also spend far too much on weapons. Research, development and upgrading swallow up huge amounts of money. As the weapons become more sophisticated the costs go up sky high. Where before a fighter plane would cost a million dollars, now they cost 50 to 100 million dollars.
13. Yet these weapons are quite useless in fighting the guerrilla wars they are likely to face. And they dare not have wars with countries with the same military capacities because it would be ruinous for everybody and would probably spell the end of the world.
14. Their military budget contributes to the wastage of funds as the likelihood is that the weapons would never be used for the purpose they are developed, certainly not on the scale they are being prepared for.
15. Everything points towards a new Bretton Woods. The world’s economy has become much more liked and integrated that a new set of monetary, financial and banking system needs to be negotiated and devised, taking into consideration the views and problems of the poor countries as well. There should be no thoughts about hegemony; military, political or economic.